Cherwell District Council has confirmed that from April 2026, all second homes within the district will be subject to a 100% council tax premium. This is along with West Oxfordshire District Council who implemented the change in April this year. This effectively doubles the annual council tax bill for anyone who owns a second home that is not their primary residence.

This change forms part of a broader government push to address housing shortages and bring underused homes back into fuller use. While the intention is clear, the impact on second-home owners will be significant—and in many cases, unavoidable.

In this blog, we’ll break down what the change means, why it’s being introduced and the real-world implications - and opportunities - for property owners across Cherwell & West Oxfordshire.

Why the Council Tax Premium Is Being Introduced

Across the UK, councils are exploring ways to increase housing supply and discourage properties from sitting empty for extended periods. Second homes often remain unused for large portions of the year, limiting availability in high-demand areas.

By increasing the financial cost of holding a second property, councils hope to:

• Encourage owners to bring homes back into regular use

• Free up more housing for local residents

• Generate additional revenue to support essential public services

Cherwell District Council’s decision aligns with similar policies now being adopted across the country.

How the 100% Premium Will Affect Second-Home Owners

1. Higher Annual Holding Costs

For many owners, this policy will make a noticeable difference to their yearly finances. A council tax bill of £2,500 suddenly becomes £5,000. For some, the increased cost may force a re-evaluation of whether keeping a second home is still financially sensible.

2. A Push to Make Better Use of Under-used Properties

Properties that sit empty—even for part of the year—will now become far more expensive to retain without generating revenue. Owners may find it necessary to maximise utilisation, either by increasing personal use or exploring rental options.

3. Changes in Local Property Market Behaviour

We may see a shift in the local property landscape. Some owners may opt to sell, while others will look for ways to cover the additional costs, potentially through short-term or mid-term letting.

4. Increased Funding for Local Services

The council tax premium also brings financial benefits to the local authority. Additional revenue can be used to support community services, infrastructure, and efforts to tackle the housing challenges the district faces.

But with Challenge comes Opportunity....💡

For second-home owners who want to keep their property but are worried about rising bills, short-letting offers a practical, income-generating alternative. By turning a second home into a professionally managed short-let, owners can:

✅ Help offset the new council tax premium
✅ Generate meaningful additional income
✅ Maintain flexibility for personal use
✅ Ensure their property is looked after, not left vacant

For many, transforming an idle property into a short-let can help offset the new council tax premium, create meaningful additional income and ensure that the property remains well-maintained.

Final Thoughts

The 100% council tax premium marks a major shift for second-home owners in Cherwell and West Oxfordshire. While the change does present financial challenges, it also opens the door to new opportunities—whether that’s creating income through short-letting, improving property utilisation or rethinking long-term plans.

With demand for high-quality short-term accommodation strong across Oxfordshire, this shift could make financial sense while still keeping long-term options open.  If you’re a second-home owner wondering how this change might impact you - or if you want to learn more about short-letting your property - we're always happy to have a chat.

Change is coming, but with the right strategy, it can work in your favour!