DLUHC launches consultation on proposals to exempt further categories of dwellings from the council tax premiums for empty properties and second homes in England

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Following proposed strengthening of the empty homes premium and introduction of a second homes premium in the Levelling Up and Regeneration Bill, Department seeks views on possible additional exemptions

The Department for Levelling Up, Housing and Communities (DLUHC) has launched a consultation on proposals to exempt further categories of dwellings from the council tax premiums for empty properties and second homes in England.

In its Levelling Up and Regeneration Bill – which was introduced in May 2022 – the government makes provision to –

• amend the definition of 'long term empty homes’ so that, for financial years from 2024/2025 onwards, dwellings unoccupied and substantially unfurnished for a continuous period of at least one year (previously two years) are liable for the council tax premium (which ranges between 100 per cent and 300 per cent depending on the length of time the property has been vacant); and
• enable billing authorities to charge a discretionary council tax premium of up to 100 per cent for dwellings which are periodically occupied (second homes).

While properties that are empty while the occupant is living in armed forces accommodation for job-related purposes and annexes that are used as part of a main property are currently exempt from the long-term empty home premium, the DLUHC is proposing that a number of further exemptions should apply under the new provisions, including –

Situations where neither premium should apply –

• properties undergoing probate; and
• properties being actively marketed for sale or let.

Situations where the long-term empty home premium should not apply –

• empty properties undergoing major repairs up to a limit of six months.

Situations where the second home premium should not apply –

• annexes forming part of, or being treated as part of, the main dwelling;
• job-related dwellings;
• occupied caravan pitches and boat moorings; and
• seasonal homes where year-round or permanent occupation is prohibited, or where they have been specified for use as holiday accommodation, or where occupancy as a person's sole or main residence is prevented.

Seeking views on its proposals by 31 August 2023, the DLUHC also asks if there are any additional exceptions that should be considered.

For more information, see Proposals to exempt categories of dwellings from the council tax premiums from gov.uk

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