Answers · UK 2025/26
What is the council tax premium on empty homes?
Councils can charge an empty homes premium of up to 100% extra council tax (i.e. double the normal bill) on properties that have been unoccupied and substantially unfurnished for 1 year or more, rising further (up to 300% total, i.e. 4x the normal bill) the longer a property remains empty, under rules that let councils apply the premium earlier than in the past.
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The empty homes council tax premium is a discretionary charge that individual councils in England can apply (Scotland and Wales have broadly similar but separately administered systems) to long-term empty and unfurnished properties, intended to discourage owners from leaving homes vacant when housing is in short supply. **When the premium kicks in** A property that has been both unoccupied AND substantially unfurnished for a continuous period of 1 year or more can be charged a premium of up to 100% on top of the normal council tax bill -- effectively doubling the total amount due, at the council's discretion (not every council charges the maximum, or any premium at all, so check your specific local authority's policy). **Premium increases the longer a property is empty** The premium can increase further the longer a property remains empty: - Empty 1-5 years: up to 100% premium (double the normal bill) - Empty 5-10 years: up to 200% premium (triple the normal bill) - Empty 10+ years: up to 300% premium (quadruple the normal bill) These are maximum permitted premiums that councils MAY choose to apply -- some councils apply lower premiums or none at all, and levels are set locally, so always check with the specific local authority for the property in question. **Recent tightening of the rules** Reforms have allowed councils to apply the empty homes premium after a property has been empty for just 1 year (previously the threshold was 2 years in England), meaning owners of empty properties face the extra charge sooner than they may expect if relying on older information. **Worked example** A property with a normal annual council tax bill of £2,000 has been empty and unfurnished for 3 years. If the local council applies the maximum 100% premium available for properties empty 1-5 years, the owner's total council tax bill becomes £4,000 a year (£2,000 normal charge plus a £2,000 premium) -- a substantial extra cost intended to encourage the owner to either sell, let, or renovate and reoccupy the property. **Exemptions and exceptions** Certain categories of property are excluded from the empty homes premium even after the qualifying period, including properties actively being marketed for sale or let (for a limited time), homes of members of the armed forces posted away on duty, annexes forming part of, or being treated as part of, a main property, and certain properties undergoing structural repair or major renovation work (though this exemption is often time-limited and requires evidence of genuine, active work rather than simply sitting empty). **Why the policy exists** The empty homes premium is a housing policy tool as much as a revenue-raising measure, aimed at bringing genuinely long-term empty properties back into use in areas facing housing shortages -- owners of second homes, inherited properties awaiting probate/sale, or properties undergoing lengthy unplanned works should check their specific council's current premium schedule and any applicable exemptions well before the relevant anniversary date to avoid an unexpected large increase in their council tax bill.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.