Council Tax on Empty Properties: Premiums, Exemptions and How to Reduce Your Bill in 2026
If you own a property that is empty, you are almost certainly paying more council tax than you expect, or will be very soon. The rules on council tax for empty homes have tightened significantly in recent years, and 2026 sees those changes fully embedded across most of England and Wales. This guide explains the current rules, which exemptions still exist, how long they last, and what you can do to reduce your liability if you own a vacant property.
The Basic Rule: Empty Homes Are Not Council Tax Free
Many property owners assume an empty house means no council tax. That has not been true for most properties for many years. Since 2013, local councils in England have had the discretion to charge the full council tax rate on empty homes, with no automatic discount. Most councils exercise that power, meaning you pay 100% of the council tax charge from day one of the property being empty, unless an exemption applies.
The situation became significantly more expensive from April 2024. Under the Levelling Up and Regeneration Act 2023, councils in England gained new powers to charge premiums on top of the standard 100% charge. These premiums apply once a property has been empty for a certain length of time, and the rates escalate the longer the property stays vacant.
The Empty Homes Premium: What It Costs in 2026
From April 2024, the England empty homes premium structure changed substantially. The previous rules allowed a 100% premium after two years and a 200% premium after five years. From 1 April 2024, the thresholds shortened and the rates increased:
One to Five Years Empty: 100% Premium
If your property has been empty and unfurnished for between one year and five years, your council can charge a 100% premium on top of the standard charge. That means you pay 200% of the standard council tax bill. For a Band D property in an area charging the England average, that equates to over £4,300 per year in 2026.
Five to Ten Years Empty: 200% Premium
If the property has been empty for between five and ten years, councils can charge a 200% premium. That pushes the total charge to 300% of the standard rate, approaching £6,500 per year for a Band D property in an average-charging area.
Over Ten Years Empty: 300% Premium
For properties vacant for more than ten years, councils can charge a 300% premium, bringing the total bill to 400% of the standard council tax. This is the maximum charge under current legislation and is designed to make long-term vacancy financially unsustainable for owners.
Not every council charges the maximum. Some councils apply lower premiums, and some have not yet adopted the higher rates available since 2024. However, the direction of travel is clearly towards maximum premiums across most areas, and many councils reviewed their policies in 2024 and 2025 to adopt the new powers in full.
Wales operates a similar but separately legislated system. Welsh councils have had the power to charge up to a 300% premium since April 2023, and many Welsh authorities now apply the maximum rate on long-term empty properties.
Which Properties Are Exempt from the Empty Homes Premium?
The premium does not apply in all circumstances. The regulations set out specific classes of property that are exempt from the premium (though they may still be charged the standard 100% rate). The main exemptions in England are:
Properties Left Empty by a Deceased Owner
If the owner has died and the property is awaiting probate or administration of the estate, it is exempt from the empty homes premium for as long as probate is pending and for up to six months after a grant of probate is made. This exemption gives executors reasonable time to deal with the estate without incurring penalty charges. The standard 100% charge may still apply during this period depending on local authority policy, but the premium on top is suspended.
Properties Undergoing Structural Repair or Renovation
If a property is empty because it is actively undergoing major structural repair or is being renovated, an exemption from the premium may apply. This exemption is time-limited and councils will want evidence of active works rather than a property simply left derelict with no progress being made. The exemption is typically granted for up to 12 months, though extensions may be considered in complex cases.
Properties Marketed for Sale or Let
From April 2024, a new exemption was introduced for properties that are genuinely on the market for sale or let. If a property is actively being marketed, the premium does not apply for the first 12 months. This is intended to avoid penalising owners who are actively trying to bring a property back into use, while still encouraging prompt action. After 12 months of continuous marketing without a sale or let, the exemption lapses and the premium becomes chargeable.
Properties Requiring Planning Permission or Building Regulation Consent
Where a property is awaiting planning permission or building regulation approval before occupation or renovation can proceed, an exemption from the premium may be available. Councils assess these on a case-by-case basis and will want to see evidence that the planning or consent process is actively being pursued.
Properties That Are Annexes or Job-Related
Certain classes of property that form part of a larger domestic arrangement, or are linked to a person’s employment, may be exempt from the premium. This includes granny annexes that form part of the main property’s grounds and properties that must be kept available for a job. These exemptions are narrower than they appear and specialist advice is recommended if you believe one applies.
Older Exemptions That Still Apply to the Standard Charge
Separate from the premium exemptions, there are older class exemptions that can reduce or eliminate even the standard 100% council tax charge on an empty property. These apply in specific circumstances:
Uninhabitable Properties
A property that is empty because it is uninhabitable due to structural conditions, severe disrepair, or the need for major works may qualify for a Class D exemption, though this is now heavily time-limited and discretionary. If claimed, it can mean the property is exempt from council tax entirely rather than simply exempt from the premium. Evidence of the condition of the property is essential.
Empty Properties Owned by Charities
Properties owned by a charity that have been empty for less than six months may be entirely exempt from council tax if the property was last used for the purposes of the charity. This is a Class B exemption and applies automatically where the conditions are met.
Properties Left Empty When the Owner Moves into Care
If the owner of a property moves into a care home, hospital, or similar residential care facility and the property they previously occupied is now empty, it may be exempt from council tax for as long as they remain in care. The exemption requires that the owner’s main residence is now the care home and that the empty property is not being occupied or let by anyone else. This exemption is important for families dealing with a relative who has moved into long-term care and protects against double liability.
Properties Left Empty by an Owner Who Has Gone to Prison
Where a property is empty because the owner is detained in prison, the property may be exempt from council tax during the period of detention, subject to similar conditions to the care home exemption.
Second Homes: A Different Set of Rules
Second homes are treated differently from simply empty properties. A second home is furnished and occasionally occupied, but is not the occupant’s main residence. From April 2024, councils in England gained the power to charge a 100% premium on second homes, bringing the potential total charge to 200% of the standard rate.
Not all councils have adopted the second home premium; take-up has been significant but not universal. Areas with high concentrations of holiday homes, such as parts of Cornwall, the Lake District, and coastal communities, have been quickest to implement the charge. If you own a furnished property that is not your main home and you are not paying a premium, check with your council whether one has been adopted or is being introduced.
Wales introduced mandatory premiums on second homes and long-term empty properties in 2023, with all councils required to charge at least a 25% premium and most charging significantly more. Welsh councils can charge up to 300% of the standard rate on both second homes and long-term empty properties.
Can You Reduce the Premium Once It Has Been Applied?
Once a premium is applied, it runs until the property is occupied, sold, or brought back into use. There is no cap on how long a premium can run. If you are in a position where a premium has been applied and you are struggling to act on the property due to financial constraints, legal complications, or other factors, the options are limited but not non-existent:
You can apply for a council tax reduction if you are personally on a low income, though the premium itself is not reduced by CTR — CTR only applies to the standard charge. You can request a payment plan if the charge is creating hardship. You can apply to the council for discretionary relief in exceptional circumstances, though these are rarely granted. And you can challenge whether the premium has been applied correctly — for example, if the property qualifies for one of the exemptions above and the council has applied the premium in error.
Practical Steps if You Own an Empty Property
If you own a property that is or will become empty, the most important steps are to notify your council immediately, check which exemptions may apply, and gather evidence to support any exemption claim you make. Key documents include:
- Evidence of active marketing if claiming the sale or let exemption
- Contractor quotes and schedules if claiming the renovation exemption
- Probate correspondence and death certificate if claiming the deceased estate exemption
- Care home admission documentation if claiming the care home exemption
- Planning application references if claiming a consent-related exemption
Exemptions are not always applied automatically. Councils require you to claim them, and delays in claiming can mean you miss out on months of relief. Once an exemption expires, councils will generally revert to full charging — with the premium if applicable — from the date the exemption ends.
What Happens if You Cannot Pay?
Council tax is a priority debt, meaning the enforcement mechanisms are more powerful than those available to most creditors. If you fall behind on empty property council tax, the same enforcement sequence applies as for any council tax debt: a reminder, a final notice, a liability order from the magistrates’ court, and then enforcement options including bailiffs, attachment of earnings, charging orders against the property, and in extreme cases committal to prison.
If the property itself is security for a mortgage and you are not paying the council tax, the council may eventually seek a charging order against the property, which could complicate any future sale. Dealing with council tax debt on an empty property early is strongly advisable.
Get Free Advice Today
The rules on empty property council tax have become significantly more complex since 2024, and the financial consequences of getting them wrong are substantial. Whether you are dealing with a property in probate, a home undergoing renovation, or a long-term vacant property where premiums have already been applied, specialist advice can help you understand your options and minimise the charge.
Council Tax Advisors offers free, confidential advice on empty property council tax, premium challenges, exemption claims, and council tax debt. Get in touch today for a no-obligation review of your situation.
Disclaimer: The information in this article is for general guidance only and does not constitute legal or financial advice. Council tax rules vary between local authorities and are subject to change. For advice specific to your circumstances, speak to an independent adviser.