Local councils are moving to double council tax bills for second-home owners from next week

More than 500,000 people will be affected by the change, with around three-quarters of local authorities opting to impose the maximum 100% surcharge on second properties.

The move, enabled by new government legislation, is set to generate over £1 billion a year in extra revenue.

The average council tax bill for a second home will jump from £2,280 to £4,560. And those with larger properties could be hit with bills as high as £8,000.

Cornwall alone expects to raise £30 million extra per year, while Dorset and North Yorkshire will gain £15 million and £14 million, respectively.

The measure, introduced under the Levelling-up and Regeneration Act, aims to tackle the impact of second-home ownership on local housing markets, particularly in tourist hotspots.

Research suggests house prices in coastal areas have surged 4.2%, compared to just 0.8% in other parts of the country.

Councils argue the extra funds are desperately needed to support local services, particularly social care, amid severe budget pressures.

Property experts warn the new charge could trigger a sell-off of second homes, particularly in coastal and rural areas where values have already dipped.

Some estate agents report a 10% drop in prices for second homes in sought-after locations.

Lucian Cook, of Savills, told the Times that demand has collapsed in the wake of recent tax changes, including a rise in second-home stamp duty from 3% to 5%.

Critics warn that not all second-home owners are wealthy investors. Paula Higgins, from the HomeOwners Alliance, cautions that many rely on rental income to supplement their finances.

“This move may help some buyers in rural areas, but for others, it’s a major financial blow,” she said.

The double council tax charge comes as households brace for a string of other hikes:

Council tax bills overall will rise by 5% in April.

Water bills will jump by £123 a year (26%), bringing the average bill to £603.

The UK now has the highest property taxes of any advanced economy, with taxes on homes accounting for 3.7% of GDP. Local authorities argue the tax hike is necessary to free up much-needed housing stock and bring in funds for essential services.

A spokesperson for the Local Government Association said: “There is a desperate need for affordable housing, and councils need every tool available to ensure homes are used to meet local demand.”

However, they admitted that council tax alone “isn’t the solution” to long-term funding pressures on local services.