Owners of some of Britain’s most exclusive beach huts are set to face sharply higher annual costs after local authorities reclassified the properties as second homes, removing a long-standing council tax discount.
From April, 344 beach huts along Mudeford Spit and Hengistbury Head in Dorset will no longer qualify for a 50 per cent reduction in council tax after Bournemouth, Christchurch and Poole Council ruled they should be treated in the same way as second homes.
The decision means annual bills will rise to £1,503 per hut, an increase of more than £60 a month, as the council seeks to raise an additional £211,000 to help fund local services under mounting financial pressure.
Around two-thirds of the huts affected, 231 in total, are owned by individuals who live outside the local authority area, according to council figures.
Despite their modest size, measuring roughly 13ft by 16ft, the huts are among the most valuable leisure properties in the UK, with prices ranging from £400,000 to as much as £575,000. That places them well above the area’s average house price of £313,000, according to official data.
Some huts can be occupied overnight for part of the year, a factor that contributed to the council’s decision to reassess their tax status. Historically, Bournemouth and Christchurch councils had not classified the huts as second homes, an arrangement inherited by BCP following local government reorganisation.
BCP Council said the move was necessary as it grapples with severe funding pressures, echoing challenges faced by local authorities across England.
Councillor Mike Cox, cabinet member for finance, said the authority had little choice but to review all available revenue sources. He said councils were operating amid an “unprecedented, ongoing financial crisis” and that recent government settlements had failed to address the scale of the problem.
“Beach huts on Mudeford Spit often sell for between £400,000 and £575,000, more than the average home in Bournemouth, Christchurch and Poole, yet owners have historically received council tax discounts,” Cox said.
He added that while the council welcomed visitors to the area’s coastline, second homes placed additional strain on services such as beach cleaning and flood protection, costs largely borne by permanent residents.
“This change delivers fairness and consistency for all owners of second homes in the area,” he said. “We understand it may be disappointing for some owners, but it is important to apply council tax policy consistently and fairly.”
The huts themselves are largely off-grid, typically lacking mains water and electricity. Many are powered by gas bottles for cooking, with limited electricity supplied via rooftop solar panels. Some include mezzanine sleeping areas and can accommodate up to six people, despite not always offering direct sea views.
The reclassification highlights a broader trend of councils tightening tax treatment on high-value leisure assets as they seek to shore up finances, particularly where properties are owned by non-residents and used intermittently.
