All the ways it’s become impossible to own two homes ...Middle East

As of next week, local authorities in England will be allowed to introduce a 100 per cent premium on council tax for second homes.

It is understood the move will hit more than 500,000 people who own two properties from April 1, with around three quarters of councils opting to impose the maximum charge.

The new powers will see a crackdown on holiday rentals and weekend cottages, and mean average bills for second homes are expected to double from £2,171 to £4,342.

Data from Generation Rent shows Cornwall, Dorset and North Norfolk are the three areas with the most second homes. Kensington and Chelsea, Camden and Tower Hamlets in London all made the top 10.

We take a look at all the ways it is going to become more difficult to become a second-home owner.

Council tax rises for second homes will prove a big deterrent for many looking to buy one, or to expand their property portfolio.

The change was put into place by the previous Conservative government as part of the Levelling-up and Regeneration Act.

One reason for the introduction, according to the Tories, was to deter properties from being left empty for long stretches and to reduce pressure on local house prices in popular tourist areas.

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However, it is not the only tax increase that will impact directly people who are buying more homes.

Stamp duty on second homes is set to increase from 3 per cent to 5 per cent on 1 April, for properties between £125,000 and £925,000 – adding more expense.

Mortgage rate increases

Nick Mendes of brokers John Charcol said: “The mortgage side of things has tightened up.

“If you already have a mortgage on your main residence, a lender will want to see clear proof that you can comfortably afford repayments on a second one – and that’s before considering any existing debt, dependants, or rising interest rates.

“Second homes typically require a large deposit – often 15 per cent or more – and being offered slightly higher rates than you might get on a standard residential mortgage.”

He added that if you are thinking about letting the property out, either occasionally as a holiday rental or more permanently as a buy-to-let, the mortgage options often require specific products with different terms and stricter lending criteria.

Jonathan Rolande, property expert, said: “Inflationary rises in things such as maintenance and insurance haven’t helped.”

Societal impact

There is increasing scrutiny around the social impact of second homes – especially in rural or coastal areas where locals are struggling to get on the ladder. This has led to growing regulation and, in some places, planning restrictions that make it harder to convert properties into holiday lets or Airbnbs.

If you still intend to buy a second home, it is likely to require more thought and planning than it used t. However, experts say it is still possible.

Mr Mendes said: “Having a strong deposit saved, minimising existing debts, and improving your credit profile can go a long way when it comes to securing a decent mortgage deal. It also helps to be clear about how you plan to use the property and choose the right type of mortgage from the outset, whether that’s residential, buy-to-let, or holiday let.

“In some cases, looking slightly outside the usual hotspots or tourist-heavy areas can open up more affordable options with fewer restrictions, while still offering long-term value.” For those considering a second property, here are a few practical tips:

It’s not just the mortgage – you’ll need to budget for higher council tax, maintenance costs, insurance, and the additional stamp duty. Factor in those extra costs early on so there are no surprises later.

Think long-term

Is this a lifestyle purchase, an investment, or a bit of both? Your answer will shape the type of mortgage you’ll need and help you decide whether rental income needs to form part of your plan.

Lenders will look closely at your income, outgoings, credit score, and any existing mortgage obligations. The cleaner and more organised your finances are, the smoother the process.

Choose your location carefully

Some councils are introducing restrictions or higher taxes on second homes, particularly in holiday hotspots. Research the local authority’s stance before you buy – it could affect how usable or profitable your second home is.

Consider how much time you’ll spend there

If the property will sit empty for long stretches, it might be worth exploring managed lettings or part-time rental options to offset costs – though you’ll need the right mortgage and permissions in place.

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