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Homes in England with no residents will attract a council tax premium of up to 100% from 01 April as tax reforms aimed at supporting people in areas where empty properties prevent them from finding affordable housing come into force.
Changes brought in by the Levelling Up and Regeneration Act 2023 reduce the time before a property is considered an empty home from two years to one year, meaning that homes that have been empty for one year will be subject to a 100% council tax premium.
The Act also introduced a council tax premium of 100% for substantially furnished homes that are not someone’s sole or main residence, but because councils must determine at least one year in advance of introducing a second homes premium, the earliest a council can utilise the second homes premium is April 2025.
A range of exemptions will apply
Properties undergoing major repairs or structural alterations will have a 12-month exception from the empty homes’ premium.
Properties being actively marketed for sale or let will have a 12-month exception from the empty homes’ premium. This will provide protections for landlords whose rental property may become empty in between lets or have a gap between tenancy agreements. It also covers properties where an offer to rent has been accepted but the tenant is not yet entitled to occupy the property because the tenancy has not yet started. The exception can also be used where the sale is taking time to complete because it is part of a chain.
Inherited properties will have a 12-month exception after probate or letters of administration have been granted. Where there are cases that merit a longer exception period, or a higher level of discount, councils can continue to exercise their discretion.
Article Abridged from Propertymark
Double tax on empty homes takes effect on 1 April 2024 | Propertymark
