Labour plans to tax holiday homes in homelessness crackdown

Under the plans, the holiday homes would face an average annual bill of around £3,200, meaning the estimated 174,000 properties used for this purpose in England could generate up to £560m a year.

The new levy would be based on a property’s council tax band and represent a doubling of its council tax bill.

Labour stressed that the new levy would only be applicable to second homes primarily used as holiday houses, and would not include homes that are rented or used for employment, or static caravans.

Shadow housing secretary, John Healey, said: “Over the last eight years, the government has turned its back on the scandal of poor housing and homelessness. A housing market that works for the many, needs government action to ensure everyone has a place to call home.

“As part of the next Labour government’s plan to rebuild Britain, we will introduce a levy on second homes used as holiday homes, to help homeless families. Labour will act to put a brake on the growing gap between Britain’s housing ‘haves’ and ‘have-nots’.”