Empty Homes Council Tax Premium 2026: 100%, 200% and 300% Surcharges

An estimated 700,000 properties in England sit empty at any given time, a figure that inflames debate about housing scarcity in a country that has built too few homes for decades. Parliament's response has been to allow councils to levy increasing council tax surcharges on empty homes -- charges that have risen sharply since 2019 and now reach 300% for the longest-standing empty properties. If you own a property that has been standing empty, understanding these rules is essential to avoiding a bill that could easily run to thousands of pounds per year above your standard rate.

How the premiums work

The empty homes council tax premium is an additional percentage charge on top of the standard council tax bill for the property. The premium is set by each individual council (local authority) up to the statutory maximums, which in England from 1 April 2024 are:

For example, if the standard council tax on a Band D property in your area is £2,200/year:

• At 1 year empty: £4,400/year (£2,200 + £2,200 premium)
• At 6 years empty: £6,600/year (£2,200 + £4,400 premium)
• At 11 years empty: £8,800/year (£2,200 + £6,600 premium)

The premium applies in addition to -- not instead of -- the standard council tax. It is charged to the owner (not a tenant, since there is no tenant in an empty property).

What counts as "empty" for premium purposes

A property is generally treated as empty for premium purposes if it is unoccupied and substantially unfurnished. The word "substantially" is key -- a property with some furniture or contents may not qualify as unfurnished, though the test is broadly applied.

A "second home" that is furnished but unoccupied is a different category: most councils can also charge a premium on furnished second homes (up to 100%), but this is a separate power and many councils treat furnished second homes differently from unfurnished long-term empties.

The clock starts from the date the property first became empty. If the property has been sold and passed to a new owner, the question of whether the empty period continues under the new owner is complex -- generally, a change of owner resets the period, but HMRC and councils can look through contrived arrangements.

Key exemptions

Several categories of empty property are exempt from the long-term empty premium:

1. Property on the market for sale or let. If you are actively marketing the property for sale or rent, many councils will grant an exemption for up to 12 months. You must have genuine evidence of marketing (estate agent listing, online adverts, etc.).

2. Probate. If the owner has recently died, the property is typically exempt from the premium while probate is being granted and for a period after -- though you should confirm the exact period with your local council.

3. Major structural repair or renovation. A property undergoing significant structural repairs or major renovation work may be exempt for up to 12 months. Cosmetic redecoration alone is unlikely to qualify; the works must be structural or major.

4. Occupation as sole or main residence is temporarily prevented. For example, if the property is subject to a court order or compulsory purchase order preventing occupation.

5. Military personnel. Armed forces personnel required to live in service accommodation may be exempt.

Furnished holiday lets: a separate regime

Furnished Holiday Lets (FHLs) that meet HMRC's qualifying criteria (available to let for at least 210 days/year, actually let for at least 105 days/year, with stays of less than 31 days) can pay business rates instead of council tax if they qualify for the "self-catering accommodation" business rates category.

Properties paying business rates are outside the council tax system entirely -- the empty homes council tax premium does not apply to them.

However, from April 2025, the government removed the FHL-specific income tax regime (removing the tax advantages of FHL status for income tax and CGT purposes). The business rates position was separately tightened: properties must meet stricter evidence requirements to qualify for the self-catering accommodation category and access Small Business Rate Relief.

From April 2026, FHL owners should obtain written confirmation from their local Valuation Office Agency (VOA) that their property is correctly listed for business rates, and ensure they meet the annual letting thresholds. An FHL that falls into council tax from business rates could immediately become subject to the second home or empty home premium.

Empty Dwelling Management Orders

Where a property has been empty for more than two years, councils have the power under Part 4 of the Housing Act 2004 to apply to the Residential Property Tribunal for an Interim Empty Dwelling Management Order (EDMO). If granted, this gives the council the right to manage and let the property -- overriding the owner's control.

EDMOs are relatively rare in practice (the legal process is slow and expensive for councils), but their existence is a reminder that long-term empty properties are not without legal risk beyond council tax.

Practical options for owners of empty properties

If you own an empty property and want to minimise your council tax liability:

1. Let the property -- the simplest solution. Even a short-term let removes the empty status.
2. Sell the property -- the premium is a significant prompt to sell rather than hold.
3. Apply for a relevant exemption -- renovation, probate, marketing.
4. Convert to another use -- development or change of use to commercial may remove the property from residential council tax entirely.
5. Register as a furnished holiday let -- if the location and type of property suit it, and you can meet the business rates criteria.

Sources

• gov.uk: Empty homes -- council tax premiums guidance for local authorities (December 2023)
• Levelling Up, Housing and Communities Act 2022: s73 -- Empty dwelling management orders
• Housing Act 2004: Part 4 -- Empty Dwelling Management Orders
• gov.uk: Business rates: self-catering and holiday let accommodation