Caravan Insurance

Owners of second homes in the UK could be set to face a higher council tax bill, it has been claimed.

New proposals for an "absentee" tax for homeowners who are only intermittently in their holiday homes have been aired by the Affordable Rural Housing Commission.

Media reports suggest that the move is being considered in a bid to prevent local villages and towns being deserted for large periods and the knock-on impact on the local economy.

The policy would work with a new tax category within the council tax, with the band delineating those homes left empty for most of the year. Reports in the Times claim that the new policy could result in council tax rates doubling or even tripling.

The move is one of a number of measures said to be under review, as ministers seek to capitalise on the booming number of second homes and curb some of the unwanted side-effects the trend has produced.

Leaving a home unoccupied for a significant period of time can also have an impact on cheap home insurance deals.

Those on the lookout for second home insurance should ensure they get the cheapest home building and contents insurance by shopping around and reading the smallprint in policies carefully.