Dorset councillors have approved proposals for a council tax premium on second homes and a tightening up on its existing premium on long term empty homes.

But only a minority of the proceeds will be used to provide affordable housing.

The new Levelling Up and Regeneration Act, which received Royal Assent in October 2023, allows long-term empty and unoccupied properties to have a 100 per cent premium from April1 this year, applied after one year rather than the previous two years.

The introduction of the 100 per cent council tax premium on second homes will come into effect in April next year – making a total council tax charge of 200 per cent. 

The council says that unlike empty dwellings, there is no requirement for a property to have been used as a second home for a fixed period of time before the premium can apply so it becomes chargeable from day one that a property is considered a second home or, in the council’s words, a “dwelling periodically occupied.”

A spokesperson for the authority says: “The proposal to introduce council tax premiums on second homes and empty properties has been discussed in Dorset for several years. Now that the government’s Levelling Up and Regeneration Bill has been passed and received Royal Assent, we will implement the changes and additional premiums in 2024 and 2025. 

“[The] council agreed to use 40 per cent of the additional monies raised to support the delivery of affordable housing. These new powers will provide much needed additional funds to help the council continue our track record of protecting vital frontline services on which Dorset residents rely.”