Labour-controlled Haringey Council in London says the owners of short lets and furnished holiday homes will be forced to pay double their council tax for the periods of time they are empty.

This will apply from April next year, 2025.

The double council tax regime will also apply to long-term empty properties, of which there are an estimated 1,000-plus in the Haringey borough. This will start in April this year, 2024.

A statement from the council says: “The additional income from both measures will fund vital council services, helping to plug the gap left by 13 years of central government underfunding.”

According to the council’s calculations, there are currently 1,028 properties in the borough which have been empty for between 12 months and five years.  Applying the premium is expected to raise an additional £900,000 a year. 

Even more properties, 1,067, are registered as fully furnished second homes – 479 with no resident for more than a year and 588 for less than 12 months.  

The council’s statement continues: “The sweeping measures will help pay for vital services at a time when the council is facing unprecedented pressure on its budget because of a several factors beyond its control. Haringey’s core government funding is now an estimated £143m less a year in real terms than it was in 2010/11. 

“Meanwhile, demand for adult social care services has dramatically increased as people live longer and often need more complex support. This coupled with other pressures, such as persistently high inflation pushing up costs, increased homelessness and residents needing more support because of the cost-of-living crisis, is putting the council’s budget under significant strain.”

Councillor Dana Carlin, Haringey Council spokesperson for finance and local investment, says: “We are determined to turn Haringey’s empty dwellings into new homes. Londoners are in the grip of a housing crisis, and bringing unoccupied homes into use is part of the solution. Across the capital there are more than 34,000 long-term empty homes – that is over half the number of London households that are currently homeless and living in temporary accommodation.  

“In Haringey we have more than 13,000 households on our housing waiting list and last year alone we received 4,400 homelessness applications, one of the highest in London. When affordable and good quality homes are in such short supply, empty properties – whether it is a short-term holiday let, a second home, or a home left empty – drives up the cost of renting locally. 

“We believe it’s fair that those who can afford to keep their properties unoccupied for long periods of time should either contribute more to preventing homelessness or explore more socially responsible ways for their properties to provide them income.”