The Rating (property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 allows councils to levy a higher amount of council tax for long-term empty properties. The premium is intended as an incentive to owners to ensure properties are occupied as soon as possible and not left empty.
In 2023, the government introduced new legislation the Levelling Up and Regeneration Act 2023 (sections 79 and 80) that permitted local authorities to impose an empty homes premium after 1 year instead of 2. The Act provides that from 1 April 2024, a property can be charged an empty homes premium of 100% after one year, even if it becomes empty before 1 April 2024.
This premium applies to the property, a change of ownership or tenancy will not affect the premium. If when you purchased or leased your property it had already been empty and unfurnished for 2 years or more, you'll have to pay the additional premium. The premium can only be removed by bringing your property back into use.
We want to reduce the number of long-term empty properties and tackle a shortage of affordable housing by encouraging property owners to bring empty homes back into use for local people.
If your property is unoccupied and unfurnished you'll have to pay the full current Council Tax charge during the first 12 months.
Charges commencing from 1 April 2024
If your property has been empty for:
- more than 1 year, you must pay a 100% premium Council Tax rate (this means you'll have to pay twice the normal rate)
- more than 5 years, you must pay a 200% premium Council Tax rate (this means you'll have to pay three times the normal rate)
- more than 10 years, you must pay a 300% premium Council Tax rate (this means you'll have to pay four times the normal rate)
Exemptions include:
- a dwelling which would otherwise be the sole or main residence of a member of the Armed Services, who is absent from the property as a result of such service
- annexes and properties that are currently marketed for sale or for rent at a level which could reasonably expect to be achieved given the property and location. If satisfactory evidence is provided that the property meets this criteria we will allow an initial period of 6 months before applying the premium. After 6 months if the council tax payer has provided further evidence to confirm that the property remains on the market, a further 6 months exception may apply
Second Homes Additional premium
In May 2022 the Government published the Levelling Up and Regeneration Bill (the Bill). The Bill includes proposals aimed at further addressing empty properties through the application of Council Tax premiums, in addition to measures which recognise the impact that high levels of second home ownership can have in some areas.
Second home ownership within the North Yorkshire area is significant and is recognised to have a negative impact in terms of the supply of homes available to meet local housing need.
From April 2025 City of York council will add 100% council tax premium to the bill for any property liable for council tax and classed as a second home.
Customers potentially affected will be contacted during the year to confirm the status of their property and give further advice on how they will be affected.