Westminster Doubles Council Tax on Second Homes

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Westminster City Council has introduced a 100% Council Tax premium on second homes, effective from 1 April 2025. For property owners in Westminster who do not occupy their property as their sole or main residence, this represents a significant increase in annual outgoings.

How Is a Second Home Defined?

For Council Tax purposes, a second home is a property that is substantially furnished but has no resident — meaning it is not anyone's sole or main residence. This is distinct from long-term empty properties, which are unoccupied and substantially unfurnished, and which attract a separate premium of 100% for properties empty between one and five years, rising to 200% between five and ten years, and 300% beyond that.

Who Is Affected?

The 100% premium means qualifying second homes are liable for double the standard Council Tax bill. Those most likely to be affected include owners of a furnished London pied-à-terre, investors holding properties between tenancies, and those who own Westminster properties for occasional personal use.

It is worth noting that a property actively let to tenants would not be a second home in the Council Tax sense — tenants become liable for Council Tax in their own right. Keeping void periods short is therefore one of the most straightforward ways to avoid the premium altogether, and it is something we prioritise for every property we manage.

Are There Any Exceptions?

Westminster recognises several exceptions, the most practically relevant of which are:

  • Actively marketed for sale — a 12-month exception applies from the point at which the property is first marketed, supported by a formal agreement with an estate agent. This exception can only be used once per owner unless the property has since been sold.

  • Actively marketed for let — a 12-month exception applies where the property is being actively marketed for letting. This can be used more than once, provided the property has been let continuously for at least six months since the exception last applied.

  • Job-related dwellings — where an employer requires an employee to live somewhere other than their main home.

  • Annexes forming part of the liable person's main dwelling.

  • Military accommodation — where the property would otherwise be the main residence of a serving member of the armed forces.

  • Properties where the Council Taxpayer is deceased — exempt for up to 12 months after probate is granted.

Claiming an exception requires supporting documentation, and applications should be submitted to Westminster's Council Tax service at Westminster.counciltax1@secure.capita.co.uk or by post to Westminster Council Tax, PO Box 165, Erith DA8 9DW. We can assist with preparing and submitting the necessary paperwork on your behalf.

What Should You Do?

If you own a furnished property in Westminster that is not your main residence, check whether the premium is appearing on your current bill, review whether any exceptions apply, and take action promptly if so.

If you'd like guidance on how the premium affects your property or portfolio, get in touch to book a call with us.