What is the Council Tax empty homes premium?
Councils in England can charge a premium of up to 100%, effectively double council tax, on homes that have been empty and substantially unfurnished for a year or more. The premium is at each council's discretion, and homes actively marketed for sale or let are exempt for up to 12 months.
Read more in our guide: Why landlords are selling
Maximum Premiums in England
| How long empty and substantially unfurnished | Maximum premium (on top of the normal bill) |
|---|---|
| Less than 1 year | None (councils may charge the full rate with no discount) |
| 1 year or more (from April 2024; previously 2 years) | 100%, so double the normal bill |
| 5 years or more | 200%, so three times the normal bill |
| 10 years or more | 300%, so four times the normal bill |
| Furnished second homes (from April 2025) | Up to 100% |
How the Premium Works
Councils in England can charge extra council tax on homes that are unoccupied and substantially unfurnished for long periods, to encourage owners to bring them back into use. The Levelling-up and Regeneration Act 2023 shortened the qualifying period from two years to one from 1 April 2024, and allowed councils to charge a premium on furnished second homes from 1 April 2025. Each council decides whether to charge and how much, up to the maximums. The period runs with the property, not the owner, so a new owner can inherit the clock if the home stays empty.
Exceptions Landlords Should Know
Regulations in force from 1 April 2025 exempt certain homes from the premium, including:
- homes being actively marketed for sale, for up to 12 months;
- homes being actively marketed for let, for up to 12 months;
- homes awaiting probate, for up to 12 months after the grant;
- empty homes needing or undergoing major repairs, for up to 12 months;
- annexes, job-related homes and some seasonal homes.
Each exception can generally only be used once before the property is occupied again for a set period, and councils expect evidence such as agency instructions and realistic asking prices.
A Worked Example
A landlord regains vacant possession of a Band B house with a normal bill of £1,900 a year, intending to sell. The sale falls through, and because Ground 1A was used the house cannot be re-let for a year. If it stays empty and unfurnished beyond the 12-month marketing exception, the council may charge £3,800 a year. That is on top of the mortgage, insurance and lost rent.
Why It Matters When Selling
- Empty properties cost more to hold, which is one reason many landlords now sell with tenants in place through a tenanted sale.
- Keep evidence that an empty property is being actively marketed, so the sale exception can be claimed.
- If you own empty properties in a portfolio, buyers will factor the premium into their offer.
- Rules differ in Wales, where councils can charge up to 300%, and in Scotland.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Councils in England can charge a premium of up to 100%, effectively double council tax, on homes that have been empty and substantially unfurnished for a year or more. The premium is at each council's discretion, and homes actively marketed for sale or let are exempt for up to 12 months.
In England, councils can charge it once a home has been unoccupied and substantially unfurnished for one year, under rules in force since 1 April 2024.
A home that is actively marketed for sale is exempt from the premium for up to 12 months, although normal council tax is still payable.
Usually the tenant. For HMOs and empty properties, the owner is normally liable.
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