Double council tax on second homes look set to remain in East Devon thanks to the extra income and the charge prompting some properties to become permanent homes.
A recommendation has been put forward for the 100 per cent council tax premium on second homes to be maintained in the area, partly due to the additional cash it adds to coffers.
East Devon District Council said it received nearly £400,000 from the double-charging on second homes.
But beyond the finances, the report states that part of the rationale for keeping the premium relates to its impact on freeing up homes for residents.
The council said its review of the charge indicates it was supporting key priorities “by encouraging second and empty homes back into permanent residential use and helping to improve the availability of homes for local people”.
“The greatest reductions in second homes have been in the lower council tax bands, where properties are more likely to be affordable to rent or buy,” the report prepared for East Devon’s cabinet (Wednesday 4 November) states.
“The premiums have also generated additional income, with no evidence of material adverse impacts on collection, communities, the local economy or equality.”
The number of second homes in East Devon has dropped by nearly 600 from October 2023 to August 2026, with most of that dropping post the implementation of the double-charge in April 2025.
That means the number of second homes in East Devon has fallen more than a fifth (22 per cent) since October 2023, from 2,760 three years ago to 2,165 now.
Officers said the move from council tax into business rates – which would denote a second home becoming a holiday let – was minimal.
But it cheered the movement of properties becoming homes to permanent residents.
“A former council owned property had remained in the same family for many years and was subsequently being used as a second home,” the report stated.
“Following the council introducing the premium the owner made the decision to sell the property.
“The property was purchased by a young local couple as their first home. This is an example of how the council’s policy of introducing the second home premiums has resulted in a property suitable for first time buyers being brought into permanent residential use enabling young residents to own their first property in their local town.”
While this example is highlighted as positive, officers noted that less than 3 per cent of the district’s total households were second homes.
“Due to the low percentages, it is therefore unlikely that charging the premiums or the reduction in the number of second homes has had a negative impact on our local population, our communities or our local economy as statistically this is not a material change,” the report added.
East Devon’s cabinet is being asked to back the officer view that no changes are needed and that the 100 per cent premium for second homes should remain.
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