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What disincentives could discourage people from buying second homes?

206 replies

Unabletosleep · 22/05/2026 13:14

What disincentives would work to stop people buying second homes?

Inspired by a different thread. It seems a number of people share my abhorrent of second homes.

I have seen the place I grew up turned into a ghost village by selfish idiots buying second homes. Now there is no local shop, no local school, no doctors surgery, no pub, no busses nothing. There were not enough people using them consistently for them to make money.

So what would make people stop killing local communities. Financial penalties I guess but how high? Wales has introduced a 100% local tax increase on second homes but it doesn't seem to be enough.

OP posts:
Laurmolonlabe · 22/05/2026 17:00

To be fair local communities are first and foremost killed by a lack of employment- encourage businesses and startups to start in villages and town which are decimated by unemployment.
Also work towards some semblance of metitocracy where the top 10% don't own 90% of the wealth.
Taxing second homes will not discourage the very, very wealthy - make sure there are less very very wealthy families by taxing them fairly and closing down all tax havens.

GingerBeverage · 22/05/2026 16:59

Perhaps second homes could be limited to new build flats? It seems so strange that classic, heritage properties in the heart of a village or town are sold to people who are never there, or who airbnb them, while local families get pushed further out into new builds on the edge of town.

user1469207397 · 22/05/2026 16:56

Unabletosleep · 22/05/2026 15:45

It would cause restructuring of tourism sure but not collapse. The demand wouldn't stop so supply would change. More clamping/ hotels/ guesthouses. I have never and will never speak against this.

Restructuring yes, but only to a certain degree.
Hotels and guest houses are usually more expensive and less practical for families. We can only afford one week away and have always used holiday cottages for both price point, more space and complete flexibility of space with a young family.
Where would these hotel and guest house rooms suddenly appear from?
Tourism income would definitely decrease.

HRTQueen · 22/05/2026 16:56

High taxes added and not rented out as a business which is a very comfortable way to pay low tax on an extra income

Yetone · 22/05/2026 16:55

Unabletosleep · 22/05/2026 16:49

I would argue that the best school I know personally is in a deprived part of inner London. I would happily end my child there. I don't actually think leafy suburbia guarantees good schools.

By and large the best schools or have the best behaved children are in middle class areas.
I still think you are from a middle class area and don’t have to worry about a lot of the reasons people send their children to private school.

notsureonthisone · 22/05/2026 16:53

Unabletosleep · 22/05/2026 16:45

There are some situations that are different. However this is not the majority.

That is exactly the point I'm making about posters calling for wholesale banning second home ownership.
There is also the case of inherited property with no buyers. What do you do if you can't sell within an arbitrarily set time frame as pp suggested?

Unabletosleep · 22/05/2026 16:51

Marquee2go · 22/05/2026 16:44

Take a look at Highland Council or Edinburgh Council who are tackling this issue already.

People who want to run holiday lets in tourist hotspots need planning permission, a licence, annual checks etc. The license costs £000s to obtain and has to be renewed every 3 years. They are likely to run it as a business and pay business rates so council tax is irrelevant to them.

People who don't want to let and have a second home for private use are subject to anything up to 400% Council tax.

This is interesting. Is it working?

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Unabletosleep · 22/05/2026 16:49

Yetone · 22/05/2026 16:36

Who probably lives in a middle class area where the state schools are excellent!

I would argue that the best school I know personally is in a deprived part of inner London. I would happily end my child there. I don't actually think leafy suburbia guarantees good schools.

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Unabletosleep · 22/05/2026 16:47

Surgeonsattheedgeoflife · 22/05/2026 16:29

Op, I don’t disagree with everything you’ve said but you can’t say you’d shut private schools and ban second home ownership and then claim to be a liberal. You’re a left wing authoritarian 🤷‍♀️

You see this is where labels get complicated. On private life I believe the state should but out. However yes I favor state interference to control capitalism.

OP posts:
Unabletosleep · 22/05/2026 16:45

notsureonthisone · 22/05/2026 16:15

However second homes are, to me, morally abhorrent and it seems many agree with me.

My dc had recently started a new job when their divorce came through, so they were homeless and unable to get a mortgage. I withdrew money from my SIPP to buy a second home for them to live in but needed to retain ownership as a pension asset.
Legally it is a second home and I had to pay the additional taxes on it, but all second homes are not what you think of, when you use the term. I also doubt all the ideas to control second home ownership could even accommodate a situation such as mine.

There are some situations that are different. However this is not the majority.

OP posts:
Marquee2go · 22/05/2026 16:44

Take a look at Highland Council or Edinburgh Council who are tackling this issue already.

People who want to run holiday lets in tourist hotspots need planning permission, a licence, annual checks etc. The license costs £000s to obtain and has to be renewed every 3 years. They are likely to run it as a business and pay business rates so council tax is irrelevant to them.

People who don't want to let and have a second home for private use are subject to anything up to 400% Council tax.

Unabletosleep · 22/05/2026 16:43

38thparallel · 22/05/2026 15:55

Personally I would shut all private schools because putting those children in the state system creates interested parents who will help to improve their local schools.

@Unabletosleep wow how patronising that you obviously consider private school parents as more ‘interested’ than state school parents.

No I think that many parents are interested. I also think that those parents who spend on private schools have the means to help more.

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MojoMoon · 22/05/2026 16:40

Higher returns on an alternative investment with their cash.

People bought second homes because they were rising in value faster than investing in a stock market tracker or bonds, for example.

If you have a million quid and can either put it in a house yielding 7pc a year or shares yielding 3pc, it's sensible to buy as much property as possible.

Now in the lots of places, property prices are fairly stagnant which stock markets, particular in the US, have booked (possibly not sustainably but whatever).

So fewer people will be looking to buy a second home with their cash right now. They will put it in a better yielding investment and spend the money on a hotel or existing rental or so on.

Yetone · 22/05/2026 16:36

Surgeonsattheedgeoflife · 22/05/2026 16:29

Op, I don’t disagree with everything you’ve said but you can’t say you’d shut private schools and ban second home ownership and then claim to be a liberal. You’re a left wing authoritarian 🤷‍♀️

Who probably lives in a middle class area where the state schools are excellent!

Surgeonsattheedgeoflife · 22/05/2026 16:29

Op, I don’t disagree with everything you’ve said but you can’t say you’d shut private schools and ban second home ownership and then claim to be a liberal. You’re a left wing authoritarian 🤷‍♀️

notsureonthisone · 22/05/2026 16:15

However second homes are, to me, morally abhorrent and it seems many agree with me.

My dc had recently started a new job when their divorce came through, so they were homeless and unable to get a mortgage. I withdrew money from my SIPP to buy a second home for them to live in but needed to retain ownership as a pension asset.
Legally it is a second home and I had to pay the additional taxes on it, but all second homes are not what you think of, when you use the term. I also doubt all the ideas to control second home ownership could even accommodate a situation such as mine.

DeftGoldHedgehog · 22/05/2026 16:13

I don't mind second homes so much as third, fourth etc.

Inlaws have a seaside place we go down to, they are down there loads, less than an hour and a half from their main home, and spend a lot of time down there as do other family and friends and we've spend so much time down there over the years. They didn't buy it, so much as not sell it when the family member who lived there 100% of the time passed away. I agree with 'locals only' purchasing in some areas, or a certain quota set aside for local residents, and extra tax etc but I don't see there is anything wrong with having a second home per se when you do spend quite a lot of time there and it isn't rented out as a holiday let or a nuisance to neighbours. We always eat out and spend plenty of money in pubs and shops there. They are reliant on visitors eating out more and spending more than locals I'd say.

Forty85 · 22/05/2026 16:00

Have they not already done quite a few anyway in Scotland. When buying a second home - Land and Buildings Transaction Tax (LBTT), an 8% Additional Dwelling Supplement (ADS)

For those who put them on non domestic rates and air b and b them etc, they need to annually provide evidence to the assessors they've leased them for a minimum of 70 nights and advertised for 140.

They don't get small business relief now unless they have a valid short term let license, which they need to renew every three years and reapply again for relief.

GertrudePerkinsPaperyThing · 22/05/2026 15:58

38thparallel · 22/05/2026 15:55

Personally I would shut all private schools because putting those children in the state system creates interested parents who will help to improve their local schools.

@Unabletosleep wow how patronising that you obviously consider private school parents as more ‘interested’ than state school parents.

To be fair it’s often the case that they’re more interested than SOME of the other parents.

There are many parents with their kids at state school who are extremely interested and involved. But there are some who are not. Bringing in those parents who are currently interested enough to send their kids to a fee paying school would increase the numbers of those who are interested.

38thparallel · 22/05/2026 15:55

Personally I would shut all private schools because putting those children in the state system creates interested parents who will help to improve their local schools.

@Unabletosleep wow how patronising that you obviously consider private school parents as more ‘interested’ than state school parents.

caringcarer · 22/05/2026 15:46

Unabletosleep · 22/05/2026 15:37

That sort of system could work. I think houses designated as second homes should pay more tax to be fair to the community. So that the extra money can be invested in services.

They already paid additional stamp duty to buy house and pay double council tax.

Unabletosleep · 22/05/2026 15:45

topcat2014 · 22/05/2026 15:41

Presumably all the banners would be happy for the collapse of tourism that goes with it? And associated jobs?

It would cause restructuring of tourism sure but not collapse. The demand wouldn't stop so supply would change. More clamping/ hotels/ guesthouses. I have never and will never speak against this.

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coulditbeme2323 · 22/05/2026 15:45

Unabletosleep · 22/05/2026 15:43

Me no. However everything talked of here is about changing government policy and governments DO have that right.

Would my ideas win an election? Probably not. It doesn't stop me thinking the country would benefit from an actual socialist party that would stand up for itself.

Of course that is your right, but people can respectfully say those ideas are bonkers!

Unabletosleep · 22/05/2026 15:43

coulditbeme2323 · 22/05/2026 15:34

Nobody should have told you that you were envious, that's rude.

But you can't (and shouldn't) be able to decide how others choose to educate their children.

Me no. However everything talked of here is about changing government policy and governments DO have that right.

Would my ideas win an election? Probably not. It doesn't stop me thinking the country would benefit from an actual socialist party that would stand up for itself.

OP posts:
topcat2014 · 22/05/2026 15:41

Presumably all the banners would be happy for the collapse of tourism that goes with it? And associated jobs?