Pendle Council plans to increase council tax on empty and second homes to boost local funding.
New laws started in 2023, and Pendle Council plans changes for empty homes this April. Second home changes are scheduled to begin in April 2026.
A council report indicates that Pendle has 304 homes empty for over a year. Furthermore, there are 252 second homes in the area. Some local councillors have concerns about property issues in towns and rural areas, citing Colne and Nelson as examples.
Council leaders will discuss council tax changes this week, focusing on empty and second home taxes. They are expected to finalize the budget next week.
The council wants to shorten the time before taxing empty homes. Currently, a 100% extra tax starts after two years. The proposal would start the 100% tax after only one year, with higher taxes following later. It will be 200% after five years empty and reaches 300% after ten years. This change could potentially start this April.
A home is considered vacant if nobody lives there full-time and it’s mostly unfurnished. Vacant home taxes could bring in £522,000, benefiting the county and borough councils, as well as police and fire services. Pendle Council would keep approximately £68,000 of this revenue.
Second home taxes are also on the horizon. A new law allows a tax of up to 100%, but the council must give owners a year’s notice. Therefore, Pendle can tax second homes from April 2026, defining a second home as furnished but not a main residence.
Pendle currently has 252 second homes. Taxing them at 100% could raise £450,000 yearly, with Pendle Council retaining around £58,000.
Some homes get exceptions from these taxes, including probate properties or those for sale. Major repairs or job-related homes qualify, as well as caravan pitches, moorings, and holiday homes. The council can also lower taxes for people with hardship.
Charging these taxes is optional; the council decides if and how to implement them, ensuring the rates do not exceed legal limits.