Second-home taxes to raise £8 million for Dorset Council
The authority's effectively doubling council tax for holiday homes
Last updated 31st Mar 2025
Income from a new tax rate for second homes is likely to amount to around £8 million this year for Dorset Council.
It has originally been estimated at around £9.5million for the 6,000 second homes in the county – but many have since switched the status of their homes to businesses, or sold up.
The new charges, effectively doubling the council tax paid, come into effect on April 1st.
A Dorset Council spokesperson says the final figure likely to be collected may not be known for some time as applications for changes in property status are still being received and processed.
“In reality, it’s likely that some of those have now been sold, let on long term tenancies, or changed to business rates status if they are being used as an Air BnB for example,” said the authority in a statement.
A report to councillors when the tax changes were first discussed said: “The council tax premium on second and empty homes is primarily aimed at allowing councils to raise additional revenue and to acknowledge the impact that second and empty homes can have on some communities, with a view that especially in the case of empty properties this would incentivise property owners to bring those properties back into use at the earliest opportunity.”
In some Dorset communities, especially ‘picture postcard’ locations, second and holiday homes often exceed 25% of all properties, leading, according to some, to a decline in a sense of community with rising prices forcing local people on average incomes out of the housing market.
Councillors were told that there is a risk that the second homes premium would encourage council tax “avoidance” with owners seeking to transfer their properties to business rates as holiday lets.
However the rules say they would need to prove that the property is available for let for at least 20 weeks in a year, and must also have been actually let for at least 70 days.
In most cases business rates on a property will be higher than compared to domestic council tax with the owners also having to pay a commercial rate for services such as refuse collection.