How does the council tax empty homes premium work in England in 2026?

Full answer

Local authorities in England have powers to charge additional council tax on certain properties that are not being used as a main home. These premiums are designed to incentivise owners to bring properties back into productive use. Empty homes premium tiers (England) From April 2024, English councils may charge the following premiums on top of the standard council tax bill for long-term empty properties (those that are unoccupied and substantially unfurnished): -- 1 to 5 years empty: up to 100% premium (so the total bill can be double the standard charge) -- 5 to 10 years empty: up to 200% premium (triple the standard charge) -- 10 or more years empty: up to 300% premium (quadruple the standard charge) Each council decides whether to apply the premium and at what level up to the maximum. Not all councils charge the maximum. Second homes premium From 1 April 2025, councils in England can also charge up to a 100% premium on second homes -- properties that are furnished and periodically occupied but are not someone's sole or main residence. This is a separate charge from the empty homes premium. Exemptions Not all empty or second homes attract the premium. Common exemptions include: -- Properties where the owner has died and probate has not been granted (usually exempt for up to 12 months) -- Properties undergoing major structural repair or renovation (discretionary, up to 12 months) -- Job-related vacant properties (e.g., a tied property that must be kept empty between occupants) -- Armed forces accommodation kept available for personnel -- Properties where the sole occupier has moved into a care home Wales and Scotland Wales allows councils to charge up to 300% premium on long-term empty dwellings and 100% on second homes. Scotland has its own Council Tax rules and allows councils to remove the 50% empty property discount and apply a premium of up to 100%. How to challenge If you believe a premium has been applied incorrectly, you should contact the billing authority in writing. If unresolved, you can appeal to the Valuation Tribunal for England. Letting the property avoids the charge A property that is let to tenants -- even on a short-term basis -- and is occupied is generally not subject to the empty homes premium. However, HMRC furnished holiday let rules changed in April 2025 and relief for those properties has been abolished, which may affect how some second home owners structure their arrangements.

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