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Am I the most resented person in Britain? I thought I’d ticked all the boxes that society loves to rib you for: I trained in real estate, worked for an investment bank, then in private equity, then as a talk-show host (a gob on a stick), and even appeared on a reality TV show.
I know I’m not everyone’s cup of tea; teasing is one thing, but I’ve never been taxed extra for it — until now, as a second-home owner.
From April 1, those who own holiday homes in one of the more than 200 English council areas applying new legislation, will face a 100 per cent council tax levy. For me, that means my annual bill of £4,433.68 will double to £8,867.36.
Aww diddums. I know how this narrative goes. If you can afford a second home, surely paying a few extra thousand pounds in council tax is a small price to pay? Councils are strapped, the social care bill has ballooned and you’ve evidently got money to burn — and, while we’re at it, have you seen how high house prices and rents are? Look at the social and economic damage caused by your selfishness.
Sure. My house, built in 1911, is just what’s required to solve the nation’s housing crisis. Good luck paying for the upkeep of a property that’s forever demanding more investment. As for the audacity of wanting to escape after a week of work? How dare I have such aspirations.
I bought my seaside retreat in 2012, downsizing in London to make the numbers work. My choices mean I pay more tax, while keeping people in work too. There’s the second insurance policy, with 12 per cent insurance premium tax, and VAT on renovations and building works. All fine. But a recurring tax that penalises because you own something, paying more than others for the same services, seems unjust to me.
Regardless of means, doubling your council tax is a lot of dosh to find — in my case it’s equivalent to filling up the Aston 43 times. And since that money won’t be swilling around looking for a home, it’ll mean I spend less elsewhere, impacting those businesses that could benefit from the extra custom.
But it’s not just the money that irks — though it seriously does. It’s that the policy is just another measure for a government hell-bent on disincentivising success. There’s the added VAT to school fees, decreased IHT relief for farmers; increased national insurance contributions for employers, and car tax payable on electric vehicles — not to mention the incomprehensible tax code, that punishes anyone earning over £100,000 with a 60 per cent marginal rate.
It’s not as if we can blame the current government for the changes to council tax. Yes, they’re enacting it, but The Levelling Up and Regeneration Act 2023 was crafted by the previous administration, which claims to support low taxes and sensible spending. Margaret must be spinning in her grave — or at least asking for a refund on her legacy at this attack on aspiration. The one thing that above all else drives an economy to growth is being crushed by a political class who are often second homeowners themselves, and can reclaim the new levy.
Aspiration drove me to work harder. To earn more and yes, along the way pay more tax. Now second-home owners find themselves at the bottom of a growing pile of people angry at rising taxes and fed up.
Few will weep for us, but taxing people for owning things others don’t have sets a precedent for small-mindedness and envy. What next? A swimming pool tax, a surcharge on luxury holidays or owning a walk-in wardrobe? Perhaps a tax for owning too many pairs of designer socks? Or a lavatory tax for those fortunate enough to have soft-closing toilet seats? I’d better stop giving them ideas.
Meanwhile, supporters say this tax will help solve the housing crisis and fix local government finances. If you believe that, I have a bridge to sell you. Will prices deflate? Perhaps at the top end. But the inability of successive governments over decades to build enough homes for the rising population is what’s got us into this mess.
As I write this, looking out at the sea from my house, I realise it’s not a second home — it’s my home. Covid and remote work have changed how I live. I’m registered to vote and with the local GP here, devoting a lot of time to the community by chairing the local sports club. But of course, that all counts for naught. I’m a second-home owner, I’m fair game.
So I’ll have to find a way to mitigate the increase. I notice that Essex County Council, the authority that takes 60 per cent of my council tax, is on the hunt for a new chief executive at a salary of up to £228,753, plus benefits.
On second thoughts, I’ll resist. I don’t need another title in my portfolio of societal resentment.
James Max is a broadcaster on TV and radio and a property expert. The views expressed are personal. X, Instagram & Threads @thejamesmax
