New Empty Homes Premium: Is Your Council Tax Band Correct?

Since 1 April 2024, councils in England and Wales can charge a 100% council tax premium on properties left empty for one year, down from two. However, if an empty property is derelict and uninhabitable, you can ask the Valuation Office Agency (VOA) to remove it from the valuation list entirely, stopping all council tax charges.

What has changed with the long-term empty homes premium?

Previously, local councils could charge a 100% council tax premium (effectively doubling the bill) on properties that had been unoccupied and substantially unfurnished for two years or more. This was intended to encourage owners to bring empty homes back into use.

The Levelling-up and Regeneration Act 2023 gave councils in England the power to reduce this qualifying period to just one year. Many councils implemented this change from 1 April 2024. The Welsh Government introduced similar rules for councils in Wales, also applicable from April 2024.

This means owners of properties that have been empty for twelve months could now see their council tax bill double. It is a discretionary power, so while many councils have adopted it, you must check the specific policy of your local authority.

How do councils define a 'long-term empty' property?

A property is considered 'long-term empty' for council tax purposes if it is both unoccupied and 'substantially unfurnished'. This is the key distinction between an empty home and a second home, which is furnished but not a primary residence.

There is no legal definition of 'substantially unfurnished'. Councils often consider a property unfurnished if it lacks the basic items needed for a person to live there, such as a bed, sofa, or tables. Even if a property contains some white goods, it may still be classed as unfurnished.

If a property is empty and unfurnished for a year, it may now fall into the premium category, making it more important than ever to ensure its council tax obligations are correct.

What if my empty property is uninhabitable or requires major repairs?

This is a critical point for property owners facing a large council tax premium. If a property is not just empty but is genuinely derelict and unfit for occupation, it should not have a council tax band at all.

The Valuation Office Agency (VOA) is responsible for maintaining the council tax valuation list. They can delete a property's band if it is proven to be derelict. A deleted band means there is no council tax to pay until the property is made habitable again.

This is not a loophole for avoiding tax on a property that just needs minor redecoration. The VOA requires clear evidence that the property is incapable of being lived in due to its physical state.

How do I ask the VOA to delete a council tax band?

You must contact the VOA directly to request that they remove a derelict property from the valuation list. You cannot arrange this through your local council, as councils only collect the tax based on the list the VOA provides.

The process involves submitting a proposal to the VOA, which you can do online or by post. You need to provide comprehensive evidence demonstrating that the property is derelict.

The VOA will then review your evidence. They may arrange for a physical inspection of the property to confirm its condition before making a decision. This process is separate from a standard council tax band challenge, as its goal is deletion, not re-banding.

What evidence does the VOA need to declare a property derelict?

To successfully argue that a property is derelict, you will need to provide strong supporting evidence. The burden of proof lies with you as the owner. Useful evidence includes:

• Dated Photographs: Clear, recent photos showing the interior and exterior of the property. This should highlight major structural issues, lack of a functioning kitchen or bathroom, or other factors making it uninhabitable.
• Structural Survey Reports: A report from a qualified surveyor (e.g., RICS) detailing the property's condition and the major works required.
• Builders' Quotes: Detailed quotations for the repair work needed to bring the property back to a habitable state.
• Utility Information: Evidence that essential services like water and electricity are disconnected.

Simply stating that the property is in disrepair is not enough. The evidence must collectively prove that a reasonable person could not live there.

What happens if the VOA agrees to delete the band?

If the VOA accepts your evidence, they will remove the property from the council tax valuation list. They will also determine the 'effective date' from which the property was considered derelict. This can be backdated.

Once the band is deleted, the council stops charging council tax from the effective date. If you have paid council tax since that date, you will be entitled to a full refund from your local council.

After you have completed the necessary repairs and the property is habitable again, the VOA must be informed. They will then assess the property, assign it a new council tax band, and it will re-enter the valuation list.