Rochdale council in England levied a council tax surcharge on 33 second homeowners, despite them making up only 0.04% of the housing stock. This decision raised £60,000 in additional income.
The TaxPayers' Alliance criticized the council, stating that there's 'no excuse' for such a tax in an area with so few second homes. They argued it's a misguided policy and a cash grab.
The number of second homes has increased to 245 (0.2% of housing stock), due to a new development. Meanwhile, the council faces a housing shortage, but this isn't attributed to second homeowners, as 1,729 social housing properties stand empty, half of which are uninhabitable.
Second homes accounted for just 0.04pc of Rochdale’s housing stock, yet the council opted to bring in the surcharge as soon as it could.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “These extortionate premiums were supposedly brought in to ensure that areas with high levels of second home ownership contributed to the local area.
“Even though that policy is wildly misguided, there is no excuse for councils to introduce it in areas with as little as just 33 second homes.”
He added: “It will be of little surprise to taxpayers that politicians have spied an opportunity for a cash grab, and seized it with both hands.”
Back in 2023 when the topic of introducing the premium was raised, Rochdale council said there were 33 second homes in the borough. Implementing the surcharge was expected to raise £60,000 in additional income.
The council told The Telegraph the number of second homes has since increased to 245 due to the opening of a new town centre development. The figure equates to 0.2pc of the borough’s housing stock.
The local authority is grappling with a housing shortage, but it has not been caused by the borough’s small share of second home owners.
There are 1,729 homes run by social housing associations which are standing empty, according to the latest government figures. Of these, around half are in such levels of disrepair that they are unable to be let out.
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