Housing, homelessness and local services to benefit from 100% council tax premium on second homes

Date published: 27th January 2025

More money generated from a new 100% council tax premium on second homes in three Norfolk coastal districts will fund affordable housing and homelessness services in these affected areas – thanks to an agreement between councils.

North Norfolk District Council, The Borough Council of King’s Lynn and West Norfolk* and Great Yarmouth Borough Council are all introducing the new premium from 1 April 2025, meaning these properties will pay double council tax unless they have an exception.

These districts have a significant proportion of second homes, defined as a home which is furnished but is no one’s main home. New legislation allowing the premium is aimed at local councils whose income and ability to deliver services is affected by the number of second homes in their areas.

Following constructive discussions involving Norfolk County Council and the districts, the county council has agreed to set aside 25% of the extra money it will get from the premium in 2025/26. The districts will use this to support affordable housing and homelessness services, while the county council will invest its share in local services such as roads and social care.

Councillor Tim Adams, Leader of North Norfolk District Council, said:

“This is set to generate an additional sum in the region of £1.7m for North Norfolk. This money will be used to the absolutely best effect to help us contend with the biggest challenge we face at the moment, which is financing the provision of support for people with an acute and immediate need for temporary accommodation and the wider issues around housing and homelessness in our district.” 

Councillor Alistair Beales, Council Leader at King’s Lynn and West Norfolk, said:

“This pragmatic agreement is a win-win, ensuring more of the money raised through the second homes premium is rightly spent in those districts and communities most affected by second home ownership.

“In West Norfolk, this means around £950,000 extra to fund affordable housing and valued homelessness services, while the county council will still have extra for services such as social care. All these services are under significant pressure and we’re putting the premium to good use. This is a good example of councils working well together to deliver well for our communities.” 

Councillor Carl Smith, Council Leader of Great Yarmouth Borough Council, said:

‘’We are very pleased to have reached agreement with Norfolk County Council and other councils on this additional revenue raised from council tax.

‘’It will mean that, for the coming financial year, there will be about £240,000 of new funding available to be spent on housing services here in Great Yarmouth. This is vital new money which will make a meaningful difference for residents of the borough.’’ 

* In West Norfolk, this is subject to ratification at Full Council on 30 January.