Government to double council tax on empty homes after one year

Strengthened 100% council tax premium on long term empty homes comes into force on the 1st of April.

Related topics:  Finance News
Rozi Jones | Editor, Barcadia Media Limited
12th March 2024
Abandoned terraced housing awaiting renovation
"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 own community."
- Minister for Local Government, Simon Hoare

Sharpened rules to double council tax on long term empty properties will come into force from 1st April, the government has announced.

The government says the rules will support local people in areas where high numbers of empty homes are preventing them from finding affordable housing.

The rules will apply when a property has been empty for 12 months, rather than the current two years, and councils will be given new powers to introduce the tax premium on second homes in their area from next year.

The Department for Levelling Up confirmed a very limited number of exceptions have been set out following a public consultation, which will ensure the changes are fair to homeowners. These 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 new rules follow the recent announcement of reforms to give councils greater power to control short-term lets by making them subject to the planning process.

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 own 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.”

Timothy Douglas, head of policy and campaigns at Propertymark, commented: "Propertymark has long called for action to tackle the number of empty homes to ensure they are utilised to meet housing need and demand up and down the country.

"Whilst we welcome the focus from the UK government on cracking down on long term empty homes, it would be more effective to introduce a dedicated grant scheme alongside other incentives such as interest-free loans and a first-time buyer’s grant to support people to bring empty property back into use, rather than penalising them through higher council tax premiums until they do so.

"Where a similar policy has been introduced in Wales, we are yet to see a positive impact so policy makers must do more to fully understand the causes of why homes are left empty.”

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