Owners of second and empty homes in the Lancaster and Morecambe district will soon have to pay twice as much Council Tax.
Lancaster City Council voted to charge a 100 per cent premium on Council Tax for dwellings occupied periodically and properties which have been empty and unfurnished for between one and five years.
The new rules will come into force from April 1 2024, subject to new government law.
A Levelling Up and Regeneration Bill is currently going through Parliament to allow councils to place this Council Tax premium on second homes and empty properties.
Many other councils across the country have also doubled Council Tax on second homes and empty properties.
The aim of the draft legislation is to allow councils to raise additional revenue and to acknowledge that second and empty homes can have a negative impact on the supply of homes available to meet local housing needs.
A Lancaster City Council report showed that a 100% premium on approximately 774 second homes and 223 empty homes within the district could generate in excess of £1.7m in additional Council Tax revenue, to include around £190,000 for the city council's expected share.
A council report said: "It is recognised that the application of a second homes premium might encourage Council Tax avoidance, for example by second homeowners transferring properties to become liable to Business Rates.
"In addition, the application of a premium may prompt owners to reclassify properties for legitimate reasons; thereby reducing the potential additional revenue that might be generated. As such, our prudent assumption is in the range between £100,000 and £120,000 for potential additional revenue. However, this will be updated once the legislation is passed."
Councillors discussed the changes at a meeting at Morecambe Town Hall on Wednesday.
Councillor Andrew Gardiner, Conservative leader, in supporting the motion, said: "Will it stop second homes? I don't think it will do. What it will do is bring in income, which for all councils, is vital in today's world."
Councillor Tim Hamilton-Cox, of the Greens, who also supported the changes, said: "We need to act to try and ensure more local people have access to housing in their own communities."
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