Home Money Empty houses to pay double council tax after a year in second home crackdown

Empty houses to pay double council tax after a year in second home crackdown

by Elijah
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Empty houses to pay double council tax after a year in second home crackdown
  • Government adjustments to council tax mean some homes will pay more and sooner
  • But those who inherit homes will have one year before having to pay double taxation.

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Owners of empty homes will pay double council tax after 12 months under the Government’s plans, but bereaved families will now have a year’s grace.

The Government is restructuring the way council tax works to reduce the number of second homes and those that remain empty for long periods.

The problems of second homes and empty properties have sparked anger in regions including Devon, Cornwall, Norfolk and parts of Wales.

Many residents feel their regions are experiencing an influx of vacation homes that sit empty for much of the year, emptying communities and causing home prices to rise.

Empty houses to pay double council tax after a year

The Department of Levelling up, Housing and Communities (DLUHC) has now announced adjustments to the council second home tax premium, allowing local authorities to double this tax on eligible homes.

DHLUC said it would allow councils to charge double council tax on properties after 12 months of being empty, compared to the current two years.

But it will also remove inherited properties from double council tax for up to 12 months, to be kinder to grieving families.

The reinforced premium for empty homes will come into force from April 2024.

However, each council must wait at least a year before introducing the additional charges, so the earliest possible will be April 2025. The exemption for inherited properties will also apply from April 2025.

The extra money raised will go to local authorities, who will be able to spend it however they want. The changes will only apply in England.

Long-term vacant properties are leaving local families and young people out of the property market

Simon Hoare, local government minister

The second home premium already applies, having been enacted in October 2023 with the approval of the Leveling and Regeneration Law.

But the Government wanted to refine the rules and survey opinion, so it also consulted on the issue.

The Government’s response to their consultation said: ‘Large numbers of empty homes can contribute to pressures on housing supply, while reducing the attractiveness of local areas.

‘Second homes can provide flexibility to allow people to work and contribute to the local community, whilst still being able to return to a family home in another part of the country on a regular basis.

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“However, large concentrations of second homes reduce the size of the permanent population, which can lead to local services becoming unsustainable.”

Local Government Minister Simon Hoare added: ‘Long-term empty properties are leaving local families and young people out of the property market as they are denied the opportunity to rent or buy in their own community.

‘Therefore, we are taking action as part of our long-term plan for housing. That means delivering more suitable homes in the right places and giving councils more powers to help local people get the homes they need.’

Almost all local authorities plan to increase their council tax by 4.99 percent from April 2024.

The Government also abolished tax benefits for properties rented out as holiday homes in the recent Budget, claiming the move would help those looking for affordable properties to rent and buy.

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