Empty Property Council Tax Premium: Rules and Exemptions 2026/27

Why the premium exists

The empty property council tax premium is designed to discourage owners from leaving homes standing empty for long periods while the UK faces significant housing shortages. Rather than a flat exemption or discount (which was the historical approach to empty homes), councils are now permitted to charge more than the standard council tax rate — sometimes considerably more — the longer a property remains unoccupied and substantially unfurnished.

The escalating scale

The maximum premium a council can apply generally rises in steps based on how long the property has been continuously empty:

Each council sets its own specific policy within these maximum limits, meaning the actual premium charged, and the exact point at which higher tiers kick in, can vary between local authorities. Some councils apply the maximum permitted premium immediately once the relevant time threshold is reached; others may phase it in more gradually or set a lower rate than the maximum allowed.

Illustrative example: A property with a standard annual council tax bill of £2,200 that has been empty and unfurnished for over five years, in a council area applying the maximum 200% premium, would face a total bill of £2,200 + (£2,200 × 200%) = £2,200 + £4,400 = £6,600 for the year — a substantial ongoing cost for leaving the property empty.

Common exemptions and easements

Not every empty property is automatically hit with the full premium from day one, and several situations commonly qualify for an exemption, discount, or delayed start to the premium:

• Actively marketed for sale or let: some councils offer a time-limited discount or exemption while a property is genuinely on the market, recognising the owner is trying to bring it back into use rather than leaving it empty by choice.
• Undergoing major repair or structural work: properties that are uninhabitable due to substantial building work may qualify for a time-limited exemption while the work is carried out, though this is usually capped at a set period (commonly around 12 months) rather than indefinite.
• Annexes: a self-contained annexe forming part of a single property (such as a granny flat) may be exempt or discounted, particularly if it is being used by a relative of the main household or otherwise linked to the main dwelling.
• Deceased owner's estate awaiting probate: a property left empty because the owner has died, and the estate has not yet completed probate, is often exempt from the premium (and sometimes from council tax altogether) for a period, recognising that executors cannot act quickly to sell, let, or occupy the property until legal formalities are complete.

Exact exemption criteria, discount percentages, and time limits vary considerably between councils, so owners should check the specific policy of the local authority where the property is located, rather than assuming a national standard applies uniformly.

Second homes: a related but separate premium

Distinct from the empty property premium, many councils in England and Wales also apply a separate premium on furnished second homes — properties that are not anyone's main residence but are not "empty" in the sense of being unfurnished and unoccupied. This second homes premium has its own rules, percentages, and exemptions (for example, job-related accommodation or homes actively being sold), and can apply even where the property is regularly used by the owner for holidays or occasional stays, which is a different situation from a home standing genuinely vacant and unfurnished for years.

Challenging a premium

If an owner believes the premium has been wrongly applied — for example, the property was not actually empty for the claimed period, or a qualifying exemption was not correctly applied — they can raise this directly with the council, providing evidence such as utility usage, correspondence, or evidence of active marketing. If the dispute is not resolved satisfactorily, it can be escalated to the Valuation Tribunal for England (or the equivalent body in Scotland and Wales), which independently reviews council tax banding and premium disputes.

Practical takeaway for owners and landlords

Anyone holding a property that may become empty for an extended period — an inherited home, a buy-to-let between tenancies, or a renovation project — should check the specific council's empty property premium policy early, understand which exemptions might realistically apply, and factor the escalating cost into any decision about how quickly to sell, let, or bring the property back into use.