Cumbrian MP Urges Government to Close Second Home Council Tax Loophole

A Cumbrian MP has urged ministers to close a council tax loophole that allows some second home owners to avoid paying full charges by reclassifying their properties as holiday lets.

The MP raised concerns that the current system is being exploited, enabling certain owners to reduce or avoid council tax liabilities by registering homes as short-term rental businesses rather than second residences.

During discussions with government representatives, the MP pressed for stronger regulation to ensure second homes are properly taxed and contribute fairly to local communities. The proposal is aimed at preventing further pressure on housing availability in rural areas such as Cumbria, where demand for homes continues to outstrip supply.

The MP also highlighted wider concerns about the impact of rising second home ownership, arguing that it can reduce the number of properties available for local residents and place strain on community services.

Campaigners and local leaders have long argued for reforms to address loopholes in the council tax system, including calls for clearer definitions of second homes and tighter rules on when properties can qualify as holiday lets.

Government guidance already allows councils to apply additional council tax charges on second homes, but the rules remain discretionary and vary between local authorities.

The MP has now urged the Government to act more decisively to ensure a consistent approach nationwide, arguing that closing the loophole would help protect communities and support long-term housing stability.

Further responses from ministers are expected as pressure continues to grow over second home taxation policy.

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