Oxford City Council won national praise after recently announcing plans for a second homes tax, to be introduced in April 2026. This decision is consistent with the judicial review brought by West Oxfordshire District Council. So it was remarkable that they imposed a second homes tax already in April of this year.
The new punitive tax will mean a 100 percent premium is slapped on to the council’s usual tax bill. This fee only applies to properties that are treated as second homes. In the end, as of September 2025, Oxford has only 1,100 second homes registered overall, while all of north Oxfordshire has another 760. The councils are using this new program to help tackle their local housing shortages and affordability challenges.
The government has issued a list of exemptions that should apply to the second homes tax. Only certain properties would be eligible for exemption. This would mean any home currently listed for sale or rent, any home required for work-related travel, and second homes that prohibit year-round residency.
Once introduced this tax will provide hundreds of millions of dollars in annual revenue for local councils. Oxford City Council anticipates raising approximately £1.8 million from the second homes tax, which will be allocated to support local services.
“This decision allows us to address local housing shortages and affordability issues.” – Cherwell District Council spokesperson
Additionally, the councils believe that by applying a premium on second homes, property owners will be encouraged to return these homes to the housing market. These steps could greatly increase the number of homes that local residents have access to. It would rearm our forces in the long, slow struggle against the housing crisis.
Both Councils have made it clear that they plan to keep housing within reach for their residents with respect to affordability. This action addresses the supply side challenges posed by the increasing stock of second homes in the area. It’s a huge win for the community.
