Second and empty homes in Portsmouth set to pay more in council tax from April

Portsmouth City Council has approved the 100 per cent council tax premium on second homes and properties that have been vacant or unfurnished between one and five years which will come into effect on April 1, 2025 – the earliest opportunity for the council to introduce the policy.

The council gained the authority to set premium rates after the Levelling Up and Regeneration Act became law in October last year. Council analysis shows that the premium on second homes could increase the collectable council tax by approximately £1.68m across all tax bands.

Currently, there are 977 second homes in the city, which are valued at £1,685,847.52 by the council. When the premium is added, this value doubles to £3,371,695.04. The 435 empty homes across Portsmouth could potentially generate an additional £690,000 for the council.

Council documents said the premiums have a “significant positive financial implication” which could equate to an extra £2.375m per year. “It would be prudent however to assume a downward shift, as property owners change the use of properties, sell, or as a result of other changes in circumstances,” it said. “It may therefore be prudent to assume this value reduces by 20 per cent to £1.9m.”

Councillor Simon Bosher, the Conservative group leader, said: “We’ve probably all got examples of houses that have stood empty and perhaps blighted our communities.” He stated his support for the proposals, especially if they lead to the creation of “much-needed” family homes in the city.

Councillor Steve Pitt, leader of the Liberal Democrat administration, added: “We are a city with limited land – we were all sharing anecdotes of particular properties that have stood empty for far too long. By introducing this policy we’re also able to bring much-needed additional income into the council but ensure that more people are able to secure homes locally.”