Southwark Council’s new powers to charge a 100 per cent council tax premium on second homes is a huge step in the right direction.
It will allow the council to invest more in its current housing stock and could put more homes on the market by forcing second homeowners to sell up.
In our article, we make a conservative estimate that the council could make over £2.7 million from the change but it could be even more than that. Local politicians have told the News that second homes in Southwark are often in some of the borough’s most affluent areas, meaning they are frequently in higher tax bands.
The speed with which local authorities across the UK have backed the law change is testament to its necessity. But Southwark Council is the first to admit there is more work to be done, particularly around empty homes. Empty dwelling management orders (EDMOs) and compulsory purchase orders (CPOs) are both tools the council can use to requisition unused properties. But currently, neither housing need nor community impact are considered legitimate reasons for pursuing EDMOs or CPOs. This needs to change and government legislation is necessary to do so.
After all, in spite of all the new residential developments being built, the housing system will remain a quagmire while perfectly good homes stand empty.