Councils to be able to double council tax on homes left empty for 2+ years

Councils in England are to be allowed to charge double the rate of council tax on homes left empty for two years or more, under new legislation unveiled by the government.

The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill will be introduced on 28 March 2018.

The Ministry of Housing, Communities and Local Government said councils would be able to use funds from the premium "to keep council tax levels down for working families".

Local Government Minister Rishi Sunak said: “It is simply wrong that, while there are 200,000 long-term empty properties across the country, thousands of families are desperate for a secure place to call home.

“This new power will equip councils with the tools they need to encourage owners of long-term empty properties to bring them back into use – and at the same time tackle the harmful effect they have on communities through squatting, vandalism and anti-social behaviour.”

The Ministry claimed that the number of empty homes had reduced “dramatically” since 2013, when councils were given powers to charge a 50% premium on council tax bills. The vast majority of councils currently apply a 50% premium on long-term empty homes.

The government said guidance made it clear that the premium should not be used to penalise owners of homes that were genuinely on the market for rent or sale.

There are also exemptions in place for homes that are empty due to the occupant living in armed forces accommodation for job-related purposes, or to annexes being used as part of a main property.

Also, the council tax system provides statutory exemptions for properties left empty for a specific purpose – for example, when a person goes into care. Councils also have powers to apply discounts in cases where homes are empty due to special circumstances – for example, hardship, fire or flooding.

There is a council tax exemption for homes which are empty due to probate