Owners of second homes and empty properties in England, Wales and Scotland could be required to pay at least twice the amount of the old council tax in order to encourage landlords to redevelop their properties. However, experts remain suspicious.
Europe’s housing disaster is worsening, with acute shortages and rising flat costs. Vacant land and second homes are another problem. ONS estimates put the number of vacant homes in England in 2021 at 1.5 million, or 5.4% of all housing units, including houses and flats.
For the past ten years, a number of local councils have already been using the payment of additional council tax for empty homes, although the regulations differ.
After a two-year period, homes that are unoccupied and empty for a full year are now eligible for the enhanced empty homes bonus that came into force in April.
In addition, by virtue of the 100% Council Tax equivalent of the bonus, the standard rate is almost doubled. This can be as much as 300% of the normal rate, depending on how long the property has been unoccupied.
Higher Council Tax on Vacant Homes in the UK
In the United Kingdom, a large proportion of the housing stock is made up of vacant homes. These are dwellings with no permanent occupants. While some are genuinely empty, others may be used as 2d houses by transients or guests.
6.1% of homes in Wales, 4.2% in Scotland and 8.2% in England were unoccupied in 2021. These figures may also vary considerably from those observed in the various legitimate revaluations due to differences in information series techniques.
Council tax on Second Homes to Come Into Effect in April 2025
Owners of second homes will also have to pay a council tax premium. Before imposing a second home allowance, councils must make a decision at least one year in advance.
The earliest a council will be able to use the second-home allowance is therefore April 2025. In Scotland and England, the highest price for a second home is 200% of the Council Tax, but in Wales it can be as much as 300%.
A substantially furnished dwelling that is not a person’s principal or only residence is referred to as an occasionally occupied second home.
Nonetheless, depending on the nature and duration of the property, the Council Tax which is similar to the local offer varies.
In general, the annual charge is between €1,850 and €5,600. The advent of the second council tax has already been authorised by many local councils. As a result, owners of second homes will have to pay hundreds of pounds more a year.
Wales had 17,575 second homes without ordinary occupants in 2021, compared with 154,970 homes in England. In Scotland, 24,300 homes were classed 2d in 2022.
However, experts remain sceptical about the long-term effectiveness of these strategies, as the available data indicates.
According to the LGA, the amount of unoccupied housing is increasing not only in England, but also in Scotland and Wales, even after the imposition of a higher class for empty homes in 2013.
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