British city chases away second home owners with double council tax | United Kingdom | News

Once a haven for second homes, this East Midlands town is seeing the number of people reselling rise rapidly before being hit with a 100% increase in council tax.

Leicester saw one in 31 properties used as a second home in 2022, around 4,412 properties. However, this figure is falling rapidly following the council’s efforts to provide homes to first-time buyers.

New data released last week by the Department of Housing revealed that the number of second homes had fallen by 40% in Leicester, to just 2,624.

From 2025, many towns across the country will see second homes hit with a tax rise as Leicester doubles council tax for its homeowners.

The Local Government Association, which represents municipalities across England, has spoken of the “desperate need for more affordable housing across the country”, insisting that charging more is a method of returning homes to full use. time.

Knightsbridge Estate Agents managing director Luke St Clair said The telegraph that many second homes are used by students whose parents own the properties.

He said: “The University of Leicester is very popular and is good for law, genetics and medicine. So parents may buy houses for their children to live in while they go to school and then keep them.

“This practice is less common today than it was before 2016, but we still see cash investors, or owners who deliberately leave the property empty rather than selling it because they don’t want to bear the burden of capital gains.”

City councils across the country have all been given the power to impose the same tax increase, and many areas will use it before next year. This includes doubling council tax on homes left empty after one year instead of two.

Earlier this year, estate agents Purplebricks said buyers had searched for properties in Leicester 52,000 times in the space of three months, compared to the figure of 38,000 in London.

Mr St Clair adds that there are more than 10,000 properties for sale in LE postcodes, explaining how it has become a popular destination for professionals looking to settle within commutable distance of London and Birmingham.

“With so many people called back into offices now, you’re starting to see the benefit of being able to get on the M1 in 10 minutes, which leads to the M69 all the way to Birmingham,” he says.

“You can get to London St Pancras in less than an hour, even from Market Harborough, a pretty country town with lots of development.”