Councils Get New Power to Double Tax on Empty Homes From Next Month

Undated generic council tax picture with monopoly houses. Alamy Stock Photo via PA

New power allowing councils in England to double taxes on empty homes will take effect next month, the government has confirmed on Monday.

From April 1, councils will be allowed to charge double council tax when a property has been vacant for one year, instead of two years, because of new rules introduced in the Levelling-up and Regeneration Act 2023.

The new rule will bring England in line with Scotland and Wales.

The law also gives councils the discretionary power to double the tax on second homes in their area from April next year. The government said the policy will raise “millions more” for councils and be “unlocking more of the homes.”

Exemptions will apply to “empty properties that are uninhabitable due to extensive renovation, second homes that are not available for use year-round due to planning restrictions, or for up to a year on homes that have been inherited to prevent families who are grieving from having to pay,” the government said.

In the outcome of an eight-week public consultation on what exemptions are appropriate, published on Monday, the government said it will legislate to give a 12-month exception to properties that are actively marketed for sale or let, or undergoing major repairs or structural alterations.

A current exemption applies to an empty property because the owner has to live in armed forces accommodation for job-related purposes. The government said the same exemption will be mirrored to apply to second homes premium.

According to figures published by the Department for Levelling Up, Housing and Communities, in 2023, 261,189 homes were vacant for over six months.

The number of homes vacant for six months or over by region in England. The Epoch Times

Under current rules in England, councils can charge a premium of up to 200 percent for a property that’s empty between two to four years, up to 300 percent if a property is empty for more than five years, and up to 400 percent if a property is empty for ten years or over.

The clock is reset if an empty property has been occupied for at least six weeks.

Announcing the rule change, Minister for Local Government Simon Hoare said: “Long term empty properties are shutting local families and young people out of the housing market as they are being denied the opportunity to rent or buy in their community.

“So, we are taking action as part of our long-term plan for housing. That means delivering more of the right homes in the right places and giving councils more powers to help give local people the homes they need.”

Some councils have already said they will take advantage of the new rules.

London’s Hackney Council has already announced that the tax rate will double for 12-month empty homes from April and second homes from April next year.

According to the council, there are more than 500 properties in the area that are vacant for over a year, and 8,000 families on the council’s housing waiting list.

Birmingham and Oxford City Councils have also said they will double the tax for homes that have been empty for a year. Oxford is also ending an one-month discount for empty and unfurnished homes on April 1.

In Scotland and Wales, councils can charge a premium once a property is vacant for over a year.

Since April 2023, councils can charge up to 400 percent of normal rates on long-term empty homes and second homes.

In Scotland, councils can charge up to 200 percent, and the government plans to introduce double taxation for second homes.