Second homes under scrutiny

For many, owning a second home is a dream—whether it’s a countryside retreat, a coastal escape, or an investment property. However, with increasing pressure from local councils, second-home ownership is becoming more challenging.

 Recent reports have suggested that councils across the UK are imposing stricter regulations and higher taxes on second homes in an effort to prioritise local residents and ease housing shortages.

So, what does this mean for holiday homeowners, and how can you protect your investment? Here’s what you need to know:

Understanding the changing landscape

Several councils have introduced measures aimed at discouraging second-home ownership, including:

• Increased Council Tax Charges – Many local authorities are implementing council tax premiums of up to 100% on second homes.
• New Planning Restrictions – Some areas require homeowners to obtain planning permission before converting properties into holiday lets.
• Short-Term Letting Regulations – There are growing calls for licensing schemes for short-term rentals to ensure compliance with local housing needs.

These changes can significantly impact second homeowners, particularly those relying on rental income. Seeking early legal advice when planning to purchase a second home can help you navigate these new rules effectively.

Legal considerations for second-home owners

With local authorities cracking down on holiday lets, property owners must ensure they remain compliant with evolving regulations. Here are key legal steps to consider:

• Review your property’s use classification - If your second home is used as a short-term rental, check whether local councils require a change of use planning application. Our expert Planning Team can guide you through this process to ensure compliance.
• Understand tax implications - Higher council tax and potential business rates may apply to second homes. Consulting an expert can help you explore tax-efficient strategies to manage costs.
• Comply with rental regulations - If you let out your second home, be aware of any licensing schemes or safety regulations. Thrings can help ensure your holiday let meets all legal requirements, from tenancy agreements to health and safety compliance.
• Plan for the future - If councils continue imposing stricter rules, consider alternative property strategies. We can assist with restructuring ownership, selling, or repurposing the property to align with new regulations.

Anna Shrubsole, Partner in the Thrings Residential Property team, said: “Owning a second home should be a source of enjoyment, not legal headaches and with local councils tightening restrictions, it’s crucial to stay ahead of the changes and so proactive legal planning is more important than ever.”

“Navigating the legal landscape of second-home ownership is far from simple and requires expert guidance to be successful. By seeking out robust legal advice, you will be in a better position to understand and comply with regulations being set by the local authorities whilst protecting your rights and managing the raft of tax and planning requirements that come with it. Thrings is a full service law firm so our Residential Team can call on the expertise of our specialist planning and tax colleagues.”

Thrings’ Residential Property lawyers are skilled at navigating the rarely straightforward processes that are buying and selling and offer professional, open and tailored advice that gives you confidence in making the right decision for you. To find out more about how they can bring clarity to your dealing with the property market, please get in contact.