Council Tax Premiums - Background information

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Empty homes

Across the borough there are currently over 1,400 homes that have been empty for six months or longer (excluding those which are exempt from paying Council Tax); of these, over 400 have been empty for over two years. In a time when demand for housing is increasing this is a significant wasted resource.

Earlier this year we launched an Empty Homes Strategy covering the 5 years to 2027. This set out our target of bringing 1,000 long-term (over six months) empty properties back into use by 2022.

Under current legislation, we can charge a Council Tax premium on largely unfurnished properties that have been empty for over two years. Currently we charge the maximum premium allowable, as follows:

  • Normal Council Tax charge + 100% premium for properties empty between two and five years;
  • Normal Council Tax charge + 200% premium for properties empty between five and ten years;
  • Normal Council Tax charge + 300% premium for properties empty ten years or longer.

However, there are several situations where empty homes are exempt from Council Tax charges and premiums:

  • Property left empty by previous occupant(s) now detained under immigration law, in prison, in hospital or other place on mental health grounds
  • An unoccupied property where the previous occupier (who must have been the owner or tenant) now has their sole or main residence in a hospital, residential care home or nursing home
  • An unoccupied dwelling where the person subject to the charge is the personal representative of a deceased person and no grant of probate or letters of administration have been made or less than 6 months has elapsed since such a grant was made
  • Where occupation is prohibited by law
  • Property left empty by a person living elsewhere to receive/provide personal care
  • Property left empty by a qualifying student
  • Property repossessed under the terms of a mortgage
  • Property left empty by a bankrupt person
  • An empty caravan pitch or boat mooring
  • An unoccupied annex which cannot be let separately because it is part of the main property and where it’s letting is restricted under planning regulations
  • Property left empty due to service in the Armed Forces
  • Property left empty by a person with a serious illness
  • Empty retirement homes in leasehold developments which are advertised for sale or rent.

The government are in the process of introducing new legislation through the Levelling Up and Regeneration Bill. This will allow councils to charge a premium of up to 100 per cent after a property has been empty for one year, rather than two. Should the Bill pass and become legislation, the Council will be able to charge the premium earlier from 1 April 2024.

Second homes

There are currently almost 1,000 properties liable for Council Tax in the borough that are registered as second homes. Such properties are likely to be empty for long periods of the year and, like empty homes, could be viewed as a wasted resource in a time of high demand for housing.

Under current legislation, English councils cannot charge a Council Tax premium on second homes. Instead, owners of second homes pay the standard Council Tax charge. The Levelling Up and Regeneration Bill will allow councils in England to charge a premium of 100 per cent on second homes. Should the bill pass and become legislation, we will be able to charge the premium on second homes from 1 April 2024.

Due to rising costs as a result of inflation and rising demand for services such as caring for vulnerable adults and children, the Council needs to make difficult decisions about increasing income and/or amending service provision. The changes to Council Tax premiums outlined above would raise additional Council Tax income and therefore help the Council to balance its budget.

As well as charging a Council Tax premium, there are several other Council initiatives available to help the owners of empty homes bring them back into use. These include grants, loans and a service to match empty homeowners with landlords. If you are interested in finding out more about these initiatives, further information is available on the Council website.

Empty homes

Across the borough there are currently over 1,400 homes that have been empty for six months or longer (excluding those which are exempt from paying Council Tax); of these, over 400 have been empty for over two years. In a time when demand for housing is increasing this is a significant wasted resource.

Earlier this year we launched an Empty Homes Strategy covering the 5 years to 2027. This set out our target of bringing 1,000 long-term (over six months) empty properties back into use by 2022.

Under current legislation, we can charge a Council Tax premium on largely unfurnished properties that have been empty for over two years. Currently we charge the maximum premium allowable, as follows:

  • Normal Council Tax charge + 100% premium for properties empty between two and five years;
  • Normal Council Tax charge + 200% premium for properties empty between five and ten years;
  • Normal Council Tax charge + 300% premium for properties empty ten years or longer.

However, there are several situations where empty homes are exempt from Council Tax charges and premiums:

  • Property left empty by previous occupant(s) now detained under immigration law, in prison, in hospital or other place on mental health grounds
  • An unoccupied property where the previous occupier (who must have been the owner or tenant) now has their sole or main residence in a hospital, residential care home or nursing home
  • An unoccupied dwelling where the person subject to the charge is the personal representative of a deceased person and no grant of probate or letters of administration have been made or less than 6 months has elapsed since such a grant was made
  • Where occupation is prohibited by law
  • Property left empty by a person living elsewhere to receive/provide personal care
  • Property left empty by a qualifying student
  • Property repossessed under the terms of a mortgage
  • Property left empty by a bankrupt person
  • An empty caravan pitch or boat mooring
  • An unoccupied annex which cannot be let separately because it is part of the main property and where it’s letting is restricted under planning regulations
  • Property left empty due to service in the Armed Forces
  • Property left empty by a person with a serious illness
  • Empty retirement homes in leasehold developments which are advertised for sale or rent.

The government are in the process of introducing new legislation through the Levelling Up and Regeneration Bill. This will allow councils to charge a premium of up to 100 per cent after a property has been empty for one year, rather than two. Should the Bill pass and become legislation, the Council will be able to charge the premium earlier from 1 April 2024.

Second homes

There are currently almost 1,000 properties liable for Council Tax in the borough that are registered as second homes. Such properties are likely to be empty for long periods of the year and, like empty homes, could be viewed as a wasted resource in a time of high demand for housing.

Under current legislation, English councils cannot charge a Council Tax premium on second homes. Instead, owners of second homes pay the standard Council Tax charge. The Levelling Up and Regeneration Bill will allow councils in England to charge a premium of 100 per cent on second homes. Should the bill pass and become legislation, we will be able to charge the premium on second homes from 1 April 2024.

Due to rising costs as a result of inflation and rising demand for services such as caring for vulnerable adults and children, the Council needs to make difficult decisions about increasing income and/or amending service provision. The changes to Council Tax premiums outlined above would raise additional Council Tax income and therefore help the Council to balance its budget.

As well as charging a Council Tax premium, there are several other Council initiatives available to help the owners of empty homes bring them back into use. These include grants, loans and a service to match empty homeowners with landlords. If you are interested in finding out more about these initiatives, further information is available on the Council website.