In most cases, you have to pay council tax on every property you own, even if the property is currently empty or unoccupied. However, depending on your local council, you may be able to get a discount on council tax for any unoccupied properties you own.
What is an Unoccupied Property?
Usually, when we talk about empty or unoccupied properties, we might be referring to:
- Homes that have been left vacant after the owner passes away.
- Rental properties that do not currently have any tenants. This might include commercial properties as well as homes.
- Second homes and holiday homes, which are only occupied at certain times of the year.
Do You Pay Council Tax on Unoccupied Properties?
Yes, you usually have to pay council tax on all properties you own or rent, even if they do not currently have anyone occupying them.
If your property is classed as a “second home”, then you may have to pay a second home premium, which can be up to two times the ordinary council tax rate.
If your property is empty for a long period of time, your council maybe be able to charge you up to 300% on top of the standard council tax rate.
It all depends on the local council. For more information, contact your local council to see what rates apply in your area. You may also be able to apply for a discount.
Unoccupied Property Council Tax Exemptions
First, certain individuals are exempt – or “disregarded” – from paying council tax. You must apply for exemption even if you meet the criteria. Head here for a full list of people who are eligible for council tax exemption.
Beyond this, there are permanent exemptions for certain types of second homes and empty properties:
- If the property is an annex – that is, it forms part of the same property, and is being used as part of the main residence.
- If the property is supplied by your employer to use as accommodation when working in a different area.
- If certain local planning restrictions mean that you cannot use the property as a permanent residence.
- The property is currently uninhabitable due to major repairs or renovations. In this case, you may have to supply evidence of the property’s condition, along with a timeline for the work, to qualify for discount or exemption.
Also, you can get a 12 month exemption from paying the second home premium if:
- You are currently marketing the property for sale or to rent.
- You have received a grant of probate for the property, and are therefore managing it as part of your duty as a will’s executor.
Please note that these exemptions, whether they are temporary or permanent, only apply to the second home premium. You may still have to pay the standard council tax rate, even if you meet the criteria.
Long-Term Empty Property Council Tax Premiums
Some councils will apply significant premiums if a property is left empty for a long-term period:
- If the property is left empty for two years, you may have to pay double the standard rate.
- After five years, you may have to pay triple the standard rate.
- After 10 years, you may have to pay quadruple the standard rate.
This is why it is a good idea to sell or lease properties as quickly as possible. If you are a landlord and you are struggling to find suitable tenants, enlisting a letting agent could help you fill the property quicker so as to avoid these hefty premiums.
You may also be able to avoid these premiums through converting the property for commercial use. Commercial buildings may be subject to business rates rather than council tax, for which you may be able to get some tax relief.
How to Keep Your Empty Property Safe
Empty properties are more vulnerable to theft and vandalism. Plus, if anything goes wrong in the property, if there is nobody around to address the issue, even a small problem could quickly escalate into a full scale disaster. A small leak, for example, could spiral into a major escape of water situation.
No matter what your circumstances are, there are certain steps you should take to keep your empty property safe:
- Invest in extra security, such as CCTV, alarms, and locks.
- Use timers and motion-activated lights to make it look like someone is home.
- Check on the property as often as possible, to look for any potential issues. You could also collect accumulating mail and take care of the bins, again to make it look like the home is occupied.
- Appoint someone to check on your property for you, if you can’t. Some organisations offer dedicated property guardian schemes for this very purpose.
- Consider turning the utilities off whenever you are not using the property. There may be risks associated with this, though – such as no power to supply your security systems, and a lack of heating leading to frozen pipes in the winter. Be sure to weigh up the pros and cons first.
- Get specialist insurance cover. Most home insurance properties will only cover occupied homes. Depending on your circumstances, you may have to get dedicated probate home insurance, second home insurance, holiday home insurance, or home renovation insurance.
Specialist Unoccupied Home Insurance From James Hallam
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who are committed to protecting your property at a competitive price.
We can help you get dedicated insurance to cover your unoccupied property, no matter what your specific personal circumstances are. We can also advise you on steps you can take to keep your property safe and secure.
Learn more about our insurance services and get a free quote today.