Cabinet to discuss scrapping premium on second homes council tax charge
Last updated: 9/10/2026
Rushcliffe Borough Council’s (RBC) Cabinet meeting on October 13 is set to discuss scrapping the second homes council tax premium.
A second home is defined as a furnished property that is not occupied as anyone’s main residence but is suitable for overnight accommodation.
Several exceptions apply, including where a property is being actively marketed for sale or rent, is subject to probate, or is restricted as holiday accommodation. Armed forces personnel are also exempt from the premium.
In 2025/26 just £20,300 was raised by the scheme for RBC, introduced as part of the Levelling-up and Regeneration Act 2023, with the intention to encourage properties back into full use and support housing availability, rather than to raise revenue.
To date 165 properties in the Borough have been affected after the Council applied a 100% Council Tax premium from April 2025.
This doubled the charge to properties that have been second homes for over 12 months and with the number of properties reducing to 136.
Cabinet will discuss if the premium can now be discontinued from April 2027 and to be recommended to Full Council as part of the Council’s budget for 2027/28. The Council still retains its Empty Homes Property premium to incentivise getting more homes into use.
Since January 2024, RBC has successfully brought 45 long-term empty properties back into use, including 12 so far this year, exceeding its annual target of 10 properties, set out in the Council’s Empty Homes Strategy 2024 – 2029.
RBC’s Cabinet Portfolio Holder for Finance Cllr Davinder Virdi said: “The purpose of the second homes premium was to encourage properties back into full use rather than simply to raise additional revenue, so it is right that we review whether it is achieving that objective.
“The number of properties affected has reduced from 165 to 136, but that represents only around 0.23% of the Borough's more than 55,000 chargeable properties.
“We therefore need to consider whether continuing the premium remains proportionate and whether it is making a meaningful contribution to housing availability.
“Importantly, this does not change our approach to long-term empty homes. We have a strong Empty Homes Strategy and have already brought 45 long-term empty properties back into use since January 2024.
“The financial implications of removing the premium are manageable within the Council's wider financial position and will be reflected appropriately in our future budget and medium-term financial planning.”