RBC set to remove premium on second homes council tax charge
Last updated: 11/2/2026
Rushcliffe Borough Council’s (RBC) Cabinet has proposed to remove the premium council tax charged on second homes, distinct from its policy on empty properties.
It met on Tuesday (February 10) to discuss the forthcoming budget and outlined the new support, offset by its Empty Homes scheme, which is making inroads to bring existing empty properties back into use.
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 by February 2026 this has reduced to 130 properties.
Cabinet acknowledged the move was not sufficiently incentivising bringing properties back into use and the 100% premium could now be discontinued, bolstered by measures through an increasing drive in its separate Empty Homes scheme.
RBC’s Cabinet Portfolio Holder for Finance Cllr Davinder Virdi said: “Empty homes premiums are designed to encourage occupation, and the Council has a strong, well evidenced Empty Homes strategy. It is arguable whether the second homes premium aligns well with the aims or effectiveness of this strategy. The fact the number has reduced to 130 may indicate some success but the figure is small given the Council has over 55,000 chargeable properties, or just 0.23% of them.
“Given the volatility of Council Tax receipts and possible changes to the tax base and discounts, we are confident the impact will be managed.
“The tax base will be adjusted in future years to reflect the lower chargeable amount when we update a medium-term financial strategy for 2027/28 onwards.”
The Cabinet also proposed Council Tax to be frozen for 2026/27 at the meeting to remain the lowest in Nottinghamshire for its element of the bill, that could see it remain in the lowest 25% in the country and again the lowest in Nottinghamshire.
Despite a poor financial settlement from central government, with a further £1.2m of reduced funding announced by Government in its final settlement announced on Monday(February 9) the Council continues to significantly invest in services and assets. Over £24m is planned over the next five years.
This will include investment in developing and enhancing equipment and facilities in leisure centres, sports facilities and local parks and open spaces. There will also be match funding for 3G pitches and changing room enhancements for local sports clubs across the Borough.
A Full Council meeting on March 5 will discuss the Cabinet’s proposals.