Number of second homes in city plummets ahead of tax change

With new tax rules on the horizon, the number of registered second homes in Leicester has plummeted. Back in 2022, Government figures showed there were 4,412 properties in the city that were second homes - furnished properties that are often holiday lets or bought as investments.

The latest figure, from earlier this year, shows that number has dropped to 2,624. The tax rules are changing in April 2025 and all councils will be able to raise extra taxes by charging double council tax on second homes.

The change to the rules, known as the Council Tax Premium, is a deliberate attempt to reduce the proportion of un-lived-in homes around the country. In Leicester the 2,624 second homes represent about one in every 55 properties.

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A spokesperson from the Ministry of Housing, Communities and Local Government said: “We understand the frustration in areas where large numbers of properties are used as second homes and we are determined to tackle this issue.

“That’s why we are taking decisive action to protect communities by giving councils powers to charge a council tax premium on second homes and increasing Stamp Duty for those buying additional properties.”

Leicester City Council has decided to take full advantage of the new rules when they come into force in April. The city council's website states: "From 1 April 2025, properties that are occupied periodically (often referred to as ‘second homes’) will be subject to a 100 per cent premium if there is no resident of the property and the property is substantially furnished."

A 100 per cent premium means the amount of extra council tax owners pay will be equal to whatever their annual council tax charge is, so it will double. There will be some exemptions, for example where properties are used by charities.

See more information on where the most second homes are using the interactive map below:

To put off anyone buying a second home in the future, the amount of Stamp Duty Land Tax paid on second homes will be going up as well. The aim is to stop those people who are buying additional properties from pricing out people who just want somewhere to live.

Around the districts of Leicestershire, the change in numbers hasn't reflected what has happened in the city. While the number of second homes in Leicester has dropped by 40.5 per cent since 2022, only Melton borough has seen a drop at all, where the number of second homes has fallen from 51 to 44.

In Charnwood the number of second homes has risen from 446 to 522 since 2022. But the county districts have much lower proportions of second homes, as well as lower numbers of them.

Nationally, Cornwall remains the undisputed second home capital of England. In the county there are 14,123 second homes, which works out as one in every 20 properties.

Nationally, despite the looming tax rise, the number of second homes is on the rise in England, with a national increase of 8.9 per cent since 2022.