Penalty for empty homes

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Europe, UK (Commonwealth Union) – Starting on April 1st, a reinforced measure will be implemented, imposing a 100% council tax premium on long-term vacant homes. This initiative empowers councils to utilize the generated revenue in the forthcoming fiscal year.

Additionally, enhanced regulations will take effect on the same date, effectively doubling the council tax on properties that have been empty for an extended period. This move aims to support local residents, particularly in regions where the abundance of vacant properties hampers the accessibility of affordable housing. Notably, the updated regulations will be triggered after a property remains empty for 12 months, a significant reduction from the previous threshold of two years. Furthermore, councils will receive expanded authority to enforce the tax premium on secondary residences within their jurisdiction starting next year. This strategic measure is expected to bolster public service funding or maintain overall council tax rates at a manageable level, according to a statement.

The Department for Levelling Up has officially announced a small number of exceptions after thorough public consultation, aimed at maintaining fairness to homeowners amidst the forthcoming changes. These exceptions will be applicable to specific scenarios, such as properties undergoing extensive renovation that renders them uninhabitable, second homes subject to seasonal use restrictions imposed by planning regulations, and a grace period of up to a year for inherited homes to alleviate financial burden on grieving families.

The authorities further indicated that by providing this clarification through the consultation response, homeowners are empowered to anticipate and prepare for the impending changes. Meanwhile, local councils will have the opportunity to allocate additional funds amounting to millions towards public services, as they can now plan their budgets accordingly. Minister for Local Government Simon Hoare says “Long term empty properties are shutting local families and young people out of the housing market as they are being denied the opportunity to rent or buy in their own community.

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