Empty Homes Premium
Changes to the Council Tax Long Term Empty Homes Premium were approved at a meeting of Full Council on 23 November 2023, coming into effect from 1 April 2024. This follows changes to legislation for Council Tax included in the Levelling up and Regeneration Act 2023, which amends the Local Government Finance Act 1992.
The change means that a Long Term Empty Property Premium will now be applied when a property has been unoccupied and unfurnished for one year. Previously, the Long-Term Empty Property Premium was applied when a property had been unfurnished and unoccupied for two years.
The Premium period is calculated from the time when the property was last occupied, so a change in ownership does not (in itself) bring about a reset. A continuous period of a property being unoccupied and unfurnished (and therefore ultimately attracting a Premium) could span several different owners.
The Long Term Empty Property Premium is applied to encourage owners of long-term empty properties to bring them back into occupation and reduce the number of long term empty homes across the borough, helping to reduce the shortage of homes.
The authority has support available to help owners bring properties back into use. Information on this support can be found here.
The Empty Homes Premium is being applied as follows:
From 1 April 2024
- where a property has been empty and unfurnished for one year but less than five years, an additional 100% Council Tax Premium is applied; and
- where a property has been empty for five years but less than ten years, the Council Tax Premium is increased to 200%.
- where a property has been empty for ten years or more, the Council Tax Premium is increased to 300%.
Exceptions to the Premium
There may be circumstances where it is inappropriate for a Premium to be charged. This could include:
- properties undergoing probate (12-month exception)
- properties being actively marketed for sale or let (12-month exception)
- properties undergoing major repairs (12-month exception)
Second homes premium
The introduction of a new Council Tax Premium for Dwellings Occupied Periodically ("Second Homes") was approved at a meeting of Full Council on 18 January 2024, coming into effect from 1 April 2025. This follows changes to legislation for Council Tax included in the Levelling up and Regeneration Act 2023, which amends the Local Government Finance Act 1992.
The change means that a 100% Council Tax Premium is applied and is payable in addition to the standard Council Tax liability in respect of "Second Home" dwellings that meet the following conditions:
- there is no resident of the dwelling (sole or main residence), and
- the dwelling is substantially furnished.
Exceptions to the Premium
There may be circumstances where it is inappropriate for a Premium to be charged. This could include:
- properties undergoing probate (12-month exception)
- properties being actively marketed for sale or let (12-month exception)
- annexes forming part of the main dwelling
- job related dwellings (this will not apply to cases where someone chooses to have an additional property to be closer to work)