Homeowners face paying double council tax on second properties in Peterborough

Peterborough homeowners will be taxed twice as much on their second property.

The council says it’ll introduce an 100 per cent council tax premium on second homes, coming into force in April 2025.

There is currently no premium on second homes in the city.

Peterborough City Council (PCC) also says it’ll up its charges on empty homes.

Currently, homeowners are charged a 50 per cent council tax premium on properties that have sat empty for two years.

From April this year, it’ll charge an 100 per cent premium after one year, rising to 200 per cent after five years and 300 per cent after a decade.

“The council is hopeful that this acts as an incentive to bring homes back into use or generate additional income used to fund the rising demand for council services,” it says.

Council tax is expected to rise on all properties by 4.99 per cent this year, pushing the total charged by the council on band D homes up from £1,587.08 to £1,666.27.

The council’s budget for the upcoming financial year is set to be approved at its next full council meeting on Wednesday, 21st February.

Cambridgeshire’s police and crime commissioner will increase its precept by 4.8 per cent, while the Cambridgeshire fire service has proposed a 2.99 per cent rise.

The Cambridgeshire and Peterborough Combined Authority (CPCA) will up its bus tax by 200 per cent (£12 to £36 on a band D property).

PCC says that increasing council tax is essential to continue delivering its services.

“We know that residents are also facing their own financial challenges, but we cannot deliver a balanced budget and continue to provide the services that people want and need without doing so,” the council says.

“By not increasing council tax this would also have a detrimental impact in our future years funding position, especially when the band D rate of council tax in Peterborough is already one of the lowest in the country.”

Last year, the council tax PCC charged on band D properties was among the cheapest 15 per cent in England.