Local government finance circular 6/2024: council tax on second and long-term unoccupied homes guidance

6. Council tax increase – second and long-term empty homes

The discretion given to local authorities to charge a premium of up to an additional 100% on top of the full rate of council tax is intended to be a tool to help them make the best use of existing housing stock by:

• prioritising housing for permanent occupation, whether this is in the rented sector or home ownership
• enhancing the sustainability of local communities; reaching the right balance for their local circumstances between local housing needs for residents, housing for seasonal workers and accommodation for tourists
• influencing ownership patterns to encourage second homeowners to use their accommodation differently, for the benefit of local communities such as from personal use to a private rental tenancy, which could help increase supply in the private rented sector
• bringing long-term empty homes back into use as safe, secure and warm housing
• increasing the supply of affordable housing

In considering whether to charge a premium, local authorities should take account of the housing need and circumstances in their areas. The following factors may be relevant:

• numbers and percentages of long-term empty homes or second homes in the area
• distribution of long-term empty homes or second homes and other housing throughout the area and an assessment of their impact on property values in particular areas
• potential impact on local economies and the tourism industry
• patterns of demand for, and availability of, affordable homes
• potential impact on local public services
• potential impact on the local community
• other measures that are available to authorities to increase housing supply
• other measures that are available to authorities to help bring empty properties back into use

Local authorities may wish to consider individual unique cases and their impact on local services, local economy, and local communities. It will be for owners to prove that their property is a genuine second home and local authorities will need to decide what evidence they require to make this determination. Decisions may include evidence in the form of utility bills, TV license and anything else that a local authority deems appropriate. Visiting officers may be used to follow up on individual properties.

6.1 Long-term empty homes

Local authorities can increase the rate of council tax by charging a premium up to an additional 100% for homes that have been empty for 12 months or more. An empty home may be either furnished or unfurnished but is either not lived in at all or is lived in for less than 25 days in any twelve-month period.

From 1 April 2024 local authorities can no longer apply the council tax premium to long-term empty homes which have been purchased by a new owner within the past 6 months, and repairs or renovations are being undertaken to bring the home back into use. Local authorities have discretion to extend the period where they consider that it is appropriate to do so in order to enable works to be completed.

Repairs and renovations that contribute to the improvement of the property include, but are not limited to:

• upgrades e.g. new kitchen and bathrooms
• energy efficiency works e.g. new windows and heating systems
• modernisation works e.g. new wiring and plumbing systems
• general repairs e.g. roof restoration and new render
• Non-structural remedial action e.g. subsidence and rising damp

This should not include activity which would not prevent the occupation of the property, (for example, minor decorative works e.g. repainting and wallpapering)  

Note, this is distinct from the existing mandatory discounts for properties undergoing major structural repair work to become habitable.