The Debate Of Empty Home Council Tax

In recent years, the UK government has tried to tackle the housing crisis by imposing council tax premiums on long-term empty homes. While the intention is to bring unused properties back into circulation. Empty home premium council tax have faced criticism from both property investors and those undertaking renovations in derelict properties. The unexpected council tax adds an unfair and stressful burden, especially after the costs of purchasing and renovations of the property.

What Is Empty Home Premium

Empty Homes Premium (EHP) is an additional council tax fee which are applied to properties in England that have been unoccupied and unfurnished for at least one year. The amount is determined depending on how long the property has been empty and your area. To find out more read the Gov website.

The empty home premium was introduced to bring properties back into use. This legislation acted as a disincentive and deterrent for owners from keeping property empty. However, the council tax premium can be automatically passed on to the new owner upon completion of the empty property purchase.

Benefits Of Empty Home Charges

• Encourages property utilization: Owners are prompted to rent, sell or occupy empty homes to reduce housing shortage and get an active community.
• Boosts local revenue: Councils can collect additional council tax from long-term empty properties, which can be reinvested into public services and local areas.
• Improving community wellbeing: Occupied homes deter vandalism, decay, pest infestation. Active social environments can increase the price of surrounding homes

Drawbacks Of Empty Home Charges

• Burden on renovators: Owners may buy a property and are actively refurbishing the property to put on the market. They can now be faced with a financial burden if the home is uninhabitable during the work.
• Discourages investments in empty properties: Potential buyers might avoid purchasing empty homes due to the risk of high empty home charges. The added costs cause more financial strain than profit overall.
• Inconsistency in the rules: Rules to charge empty homes vary across councils. It’s up to councils to decide whether to charge the premiums in their area and at what rate. This can cause confusion, and some owners may be caught off guard by unexpected charges.
• Attached to the property: Empty homes premiums are used by councils to increase council tax charges depending on how long a property is left empty. However, the surcharge is linked to the property, not the owner.

Final Thoughts

The empty home council tax aims to reduce long-term vacant properties and tackle the UK housing crisis. Although, there are many frustrated investors and prospective buyers who are unaware of the extra council tax. It’s become clear that the legalisation needs updating, so empty homes officers have more authority to support new owners.

Probate Property Services help manage empty properties and everything that entails. Our services include providing accurate valuations and putting the empty property on the market or to auction. If you wish to work with us, please get in touch. For more articles like this, read our blogs.