From next month, councils will have the authority to double tax on empty homes.
Council tax may increase for homes that remain empty for a year, with second home owners in England facing a potential double taxation starting in April next year.
Confirming on Monday, the government announced new powers allowing councils in England to double taxes on vacant homes, effective next month.
Starting April 1, councils will have the authority to impose double council tax on properties vacant for a year, a reduction from the previous two-year threshold, in line with the Levelling-up and Regeneration Act 2023.
This change aligns England with Scotland and Wales in similar policies.
Additionally, councils will have the discretion to double the tax on second homes within their jurisdictions starting from April next year, aiming to generate increased revenue and stimulate the housing market.
Exceptions will be made for specific cases such as properties undergoing renovation, second homes with planning restrictions, and temporary exemptions for inherited homes in cases of mourning.
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An existing exemption exists for vacant properties related to armed forces job accommodations. This exemption will extend to second homes premiums.
Reported by the Department for Levelling Up, Housing and Communities, over 261,189 homes were vacant for more than six months in 2023.
Current regulations in England allow councils to levy premiums of up to 200 percent for properties vacant between two to four years, up to 300 percent for properties empty over five years, and up to 400 percent for properties vacant for a decade or longer.
If an empty property becomes occupied for at least six weeks, the clock is reset on the vacancy period.
Simon Hoare, Minister for Local Government, stated, “Long term empty properties are hindering local families and young people from accessing the housing market, preventing them from renting or buying in their communities.
“This action is part of our long-term housing plan, focusing on providing suitable housing options and granting councils more authority to address local housing needs.”
Some councils have already indicated their intention to implement the new rules.
Reportedly, over 500 properties in the area are vacant for a year or more, with approximately 8,000 families waiting for housing assistance.
In Scotland and Wales, councils may impose a premium on properties vacant for over a year.
Since April 2023, councils can levy up to 400 percent in rates on long-term vacant properties and second homes.
