A Midlands council has been forced into an embarrassing U-turn and will have to refund thousands of pounds after admitting it unlawfully charged a premium on second homes.
Council admits it 'acted outside the law'
Warwick District Council has confirmed it will reimburse the double council tax it levied on second homes since April 2025. The decision comes after the council's own monitoring officer concluded the authority failed to follow proper legal procedures when implementing the charge.
The policy, which imposed a 100% council tax premium on properties that were "substantially furnished but have no resident", was introduced to address housing shortages. However, questions from a vigilant resident exposed critical flaws in how the decision was reached.
Procedural failures force costly reversal
The council's most senior legal official, Graham Leach, found no clear evidence that the cabinet considered mandatory government criteria before proceeding. This guidance, issued in November 2024, required councils to examine:
- The number of long-term empty homes in the area.
- Circumstances preventing homes from being used as main residences.
- The potential impact on the local economy and tourism.
- Effects on local services.
Furthermore, the decision to set the premium at double the standard rate was not approved by the full council, compounding the legal error.
At a meeting of all district councillors, chair Councillor Naveen Tangri (Green, Leamington Brunswick) stated the council had "acted outside the law" and that "immediate action needs to be taken to remedy this situation".
Refunds and a restart for the policy
Councillors voted to halt the current policy and begin the process anew, starting with a public consultation. The cabinet will review this in February 2026, with the aim of relaunching a legally compliant premium from April 1, 2027.
The error will cost the council an estimated £45,000 per year until the new scheme begins. Deputy chair Councillor Pam Redford (Con, Cubbington & Leek Wootton) stressed the importance of leaders taking responsibility: "The clear advice is that we as a council have made an error and we should seek to correct this at the earliest opportunity."
Portfolio holder for resources, Councillor Jonathan Chilvers (Green, Leamington Brunswick), affirmed ongoing support for the principle of a second homes levy, but only if done "in a legal and correct manner".
The only dissenting voice was Councillor David Armstrong (Green, Kenilworth Abbey & Arden), who objected to refunding second home owners on a "legal technicality" while public services struggle for funding.
In response, council leader Councillor Ian Davison expressed frustration that the government changed guidance "midway through" the process, but acknowledged the financial risk of not complying with the legal advice was too great.
The council has instituted new training for senior officers and tightened report-checking procedures to prevent future errors. An internal report also warned that administering the refunds and designing a new policy may require additional staff resources.
