Why is a second home premium being applied to a rental property?

Reply to the comment left by Slooky at 19/03/2025 – 09:18
Thanks for that update. It prompted me to check my council website as I had “assumed” (sorry!) after receiving the bill that it was an unavoidable 100% hike for rental voids. In fact Merton’s website describes this in much the same way as you have with your council. They want proof before reducing the second home surcharge. We are definitely being run by a Bureaucracy. Extract from my council website below:

Properties being actively marketed for let
This exception is time-limited and can apply for up to 12 months from the point that the dwelling has first been marketed. The exception ends when either the 12 months has expired, or the property is let or no longer actively marketed.

This exception can only apply again on the same property following a continuously let period of at least 6 months.

You will need to provide the following evidence:

evidence that the property is clearly advertised for let
a letter from the letting agent or evidence that similar properties attract the same or similar rent, confirming that it is advertised at a fair market rate
a copy of the EPC certificate contained in the sale particulars
evidence of any other reasonable steps you have taken to let the property

So realistically speaking, if you have a void of days or a couple of weeks, are you really going to go through the pain of dealing with the Council?

That torpedoes my idea of advertising at a ridiculously high rent for that period.

Reply to the comment left by Brad at 19/03/2025 – 11:35
“So realistically speaking, if you have a void of days or a couple of weeks, are you really going to go through the pain of dealing with the Council?”
Either go through the pain or increase the rent, given the hassle of dealing with the council I prefer the latter. I really feel sorry for tenants who will be adversely affected by the Renters Rights Act but have ceased to care about their plight.

Reply to the comment left by Brad at 19/03/2025 – 11:35Wow….that caused me to deep dive back into my councils website. My council only has the first 4 lines you quoted. It then gives a link to Gov.uk website.
Its worse than I thought. What happens if a tenant leaves before the 6 month period has expired. I have been told our contracts hold the tenant liable for the property until we can re-let it. But it seems that if the tenant tells the council they have moved then the council shifts the liability back to the landlord because they say someone can not have 2 main homes and therefore the tenant is only liable for the council tax for the property where they reside.
If the property has been previously empty for work and the exception has been used the council wont allow another exception within 6 months of the last one ending.
I have been a landlord for 30 years, we adapt and change but sadly it’s gone too far. Tenants will lose out when its only corporate landlords left who charge £1700 a month for a 30sq m unit.
The government don’t realise that young people today are happy to rent a flat with the added bonus of it being nicely furnished because it gives them flexibility. However the flat they are happy to rent is not the kind of property they aspire to buy.
In a few years time when we are ready we will be converting our building (which is 5 flats) back into one residence and move in.

We are the very definition of amateur landlords, owning a flat in London Borough of Sutton which is currently let unfurnished (except for white goods).

The flat is in Band C with Council Tax of £2,017.53 from April 1st (tenants pay this at the moment).

Are Sutton really going to pick our pockets for another 2 grand ?

Hopefully we have misunderstood !!

Reply to the comment left by CB Root at 23/03/2025 – 17:48
Only double if it’s furnished. If the flat is advertised for let they won’t apply the premium

Reply to the comment left by CB Root at 23/03/2025 – 17:48
I think there is a slight misunderstanding on your part. As your property is currently rented they would not look to apply the “second home premium” and I’m also not sure what the Sutton Council premium would be although, safe to assume it will be a 100% hike. However, as soon as your tenants give notice to the Council that they are vacating, the Council will come to you demanding the second home premium and it will be up to you to prove that you are actively letting out via a platform or Letting Agent at a reasonable market value rent. You will also need to supply a valid EPC certificate. You have 6 months to re-let or else they will again apply the second home premium. Also, if your tenants leave within 6 months they will also apply the second home premium on any voids I understand. On my Councils website, there was no mention of whether the property was furnished or not. I suspect they would want the premium regardless of whether furnished or not but I have no evidence to back this up. I will say that I have been back and forth with them over a few weeks now. They keep demanding further information: utility bills, tenancy agreements, universty acceptance letters (updated with the latest address), doctors appointments, dentist appointments and now they have requested copies of my bank statements to show that rent has been paid as per the tenancy agreement. It’s a very intrusive the process and makes me think that they just want you to give up and pay up…

Reply to the comment left by Brad at 24/03/2025 – 12:45@Brad, @Slooky Thanks both for the clarification – much appreciated !