Empty homes are being forced to pay double council tax after a year-long crackdown on second homes
- Due to government adjustments to municipal taxes, some houses will pay more and faster
- But those who inherit houses get a year before they are double taxed
Owners of vacant homes will pay double council tax after 12 months under government plans, but grieving families will now be given a one-year reprieve.
The government is shaking up the way council tax works to reduce the number of second homes and those left empty for long periods.
The problems surrounding second homes and vacant properties have sparked anger in regions such as Devon, Cornwall, Norfolk and parts of Wales.
Many residents feel their region is suffering from an influx of vacation homes that sit empty for much of the year, eroding communities and driving up house prices.
The Department for Leveling Up, Housing and Communities (DLUHC) has now announced changes to the council tax incentive for second homes, allowing local authorities to double this tax on eligible properties.
The DHLUC said it would allow councils to charge double council tax on properties after they have been vacant for 12 months, compared to two years now.
But it will also remove inherited properties from double council tax for as much as 12 months, to be friendlier to grieving families
The tightened vacancy premium will take effect from April 2024.
However, every municipality must wait at least a year before charging the extra charges. This will happen in April 2025 at the earliest. The exemption for inherited property also applies from April 2025.
The additional money raised goes to local authorities, which can spend it as they see fit. The changes only apply in England.
Long-term vacant properties exclude local families and young people from the housing market
Simon Hoare, Local Government Minister
The second home premium already applies after it was made law in October 2023 with the approval of the Leveling and Regeneration Act.
But the government wanted to refine the rules and gain opinions, so it also consulted on this issue.
The government’s response to its consultation stated: ‘Large numbers of vacant homes could contribute to pressure on housing supply, while also reducing the desirability of local areas.
‘Second homes can provide flexibility to enable people to work and contribute in the local community, whilst returning to a family home in another part of the country on a regular basis.
‘However, large concentrations of second homes reduce the size of the permanent population, which could result in local services becoming unsustainable.’
Local Government Minister Simon Hoare added: ‘Long-term vacant properties exclude local families and young people from the housing market, denying them the opportunity to rent or buy in their own community.
“So we are taking action as part of our long-term housing plan. This means that we must deliver more of the right homes in the right places and that municipalities must be given more powers to give local people the homes they need.’
Almost all local authorities plan to increase their municipal taxes by 4.99 percent from April 2024.
The government also scrapped tax breaks for properties rented out as holiday homes in the recent budget, claiming the move would help people looking for affordable homes to rent and buy.