Oxford’s new council tax hike aims to ensure second home owners contribute fairly
The Labour-run Oxford City Council is among several local authorities taking this step. They got new powers from the government last year to charge a premium of up to 100%. So, owners will end up paying a total of 200% in council tax.
This scheme isn’t just for Oxford. It’s also rolling out in popular tourist spots like Cornwall and the Lake District. The goal is to free up homes for first-time buyers in areas where demand is high.
Oxford’s councilors have voted to apply this 200% tax to 668 homes. This change could make the city less appealing for second homeowners. Deputy leader Ed Turner mentioned that it’s only fair for those with second homes to contribute to local services.
He emphasized the need for Oxford to be a fairer place to live. The council needs this extra money and plans to start charging as soon as they can legally do so.
Councils must give property owners a year’s notice before increasing council tax. The new premium will apply to homes that aren’t main residences.
This could bring in over £100 million for the 27 councils planning to use these new powers. For instance, Cornwall Council expects to collect £27 million, while North Yorkshire Council anticipates £14 million.
Similar measures are also happening in Wales and Scotland. In Scotland, councils can charge a 200% rate on second homes.
In Oxford, the number of properties not used as main residences jumped from 451 to 712 last year. Just recently, Oxford was named the least affordable city in the UK.
According to the Cities Outlook 2025 report, the average home in Oxford costs £571,300. That’s over 13 times the average salary of £42,000 in 2023.
