Empty Homes Premium
If you own or have bought a property and it remains empty while you carry out repairs or improvements, you will still need to pay the Council Tax.
This applies for properties that are:
- empty and unfurnished
- empty and furnished
- undergoing major works/structural repairs
- non job-related second homes.
Any property which has been empty and unfurnished for one year or more will be charged an additional 100% on its Council Tax bill. This will mean that you will be liable for double the normal Council Tax amount
Any property empty and unfurnished for five years or more will be charged an additional 200% on its Council Tax bill. This means that you will be liable for three times the normal Council Tax amount.
Any property empty and unfurnished for ten years or more will be charged an additional 300% on its Council Tax bill. This means that you will be liable for four times the normal Council Tax amount.
By charging extra Council Tax, we aim to increase the availability of affordable housing and reduce homelessness by bringing empty homes back into use.
Only in certain circumstances - such as a property left empty by someone dying or moving into a care home - does Council Tax not apply on an empty property. Find out about discounts and exemptions for council tax.
| Date of change | Empty period | Additional amount on top of normal empty charge | Total Council Tax charge |
|---|---|---|---|
| 1 April 2024 | One or more years | 100% | 200% |
| 1 April 2020 | Five or more years | 200% | 300% |
| 1 April 2021 | Ten or more years | 300% | 400% |
From 01 April 2025 some exceptions will apply to the additional 100% Empty Property Premium for a maximum period of 12 months however, the 100% charge will remain payable (unless stated otherwise below).
Second Homes Premium
If you own or have bought a property and it remains empty while you carry out repairs or improvements, you will still need to pay the Council Tax.
This applies for properties that are:
- empty and unfurnished
- empty and furnished
- undergoing major works/structural repairs
- non job-related second homes.
From 01 April 2025 any property which is empty and furnished will be charged an additional 100% Second Home premium and 200% council tax will be payable regardless of any change in ownership. (This additional charge will not be applied to properties that are temporarily unoccupied but still classed as an individual's sole or main residence, i.e. on holiday, in hospital etc)
Some exceptions will apply to the additional 100% Second Home Premium for a maximum period of 12 months however, the 100% charge will remain payable (unless stated otherwise below).
Exceptions to the Empty Property Premium and Second Homes Premium
| Classes of Dwellings | Application | Definition |
|---|---|---|
| Class E | Long-term empty homes and second homes | Dwelling which is or would be someone’s sole or main residence if they were not residing in job-related armed forces accommodation |
| Class F | Long-term empty homes and second homes | Annexes forming part of, or being treated as part of, the main dwelling |
| Class G | Long-term empty homes and second homes | Dwellings being actively marketed for sale (12 months limit) The exception will end either when the 12- month period has ended, when the dwelling has been sold or when the dwelling is no longer actively marketed for sale. The council will determine:
|
| Class H | Long-term empty homes and second homes | Dwellings being actively marketed for let (12 months limit) The exception will end either when the 12-month period has ended, when the dwelling has been let or when the dwelling is no longer actively marketed for let. The council will determine:
|
| Class I | Long-term empty homes and second homes | Unoccupied dwellings which fell within exempt Class F and where probate has recently been granted (12 months from grant of probate/letters of administration) |
| Class J | Second homes only | Job-related dwellings. The exception will not apply to cases where someone chooses to have an additional property to be closer to work while having a family home elsewhere or where an individual is posted to a new location but maintain their previous address. |
| Class K | Second homes only | Occupied caravan pitches and boat moorings. |
| Class L | Second homes only | Seasonal homes where year-round, permanent occupation is prohibited, specified for use as holiday accommodation or planning condition preventing occupancy for more than 28 days continuously. |
| Class M | Long-term empty home only | Empty properties requiring or undergoing major repairs or structural alterations (12 months limit). |
To apply for an exception to an Empty Property Premium or Second Home Premium please use the following link and provide the supporting information listed below:
Discount And Exception Application Form
By post: Sandwell MBC (Council Tax), PO Box 10597, Nottingham, NG6 6DQ
Supporting Information to be provided
Properties for let:
- Owner / landlord's current address
- Copy of the landlord's building insurance documentation
- Copy of the advert marketing the property or website it can be found on
- Photographs of the property (if not on a website)
- Confirmation of the amount of rent to be charged (if not on a website)
- Where a letting agent is being used a copy of the signed agreement between both parties
For an owner / landlord to be entitled to this reduction the property must have been occupied for a minimum of 6 months. If there is a discrepancy / dispute on these dates, then you will need to provide the following information:
- Tenancy agreement
- Proof of rent payments
Properties for sale:
- Owner's current address
- Copy of the Energy Performance Certificate
- Copy of the advert marketing the property or website it can be found on
- Photographs of the property (if not on a website)
- Confirmation of the sale amount (if not on a website)
- Where an estate agent is being used a copy of the signed agreement between both parties
- A copy of the agreement between the owner and solicitor
The exception states that the property needs to be on the market for a suitable amount and not too much over, therefore, the amount the property is on the market for must not exceed the following figures:
| BAND A | £300,000 |
| BAND B | £400,000 |
| BAND C | £500,000 |
| BAND D | £600,000 |
| BAND E | £700,000 |
| BAND F | £800,000 |
| BAND G | £900,000 |
| BAND H | £1,000,000 |
If the property exceeds the amount above you will need to provide:
- Confirmation of adaptions that have been made to the property and the date they were completed
- Copies of any planning permission documents confirming the adaptions could be made
- Any other supporting information you may have including photographs
Uninhabitable Properties
- Copy of the builder’s report
- Copy of the surveyor’s report
- Insurance documents
- Receipts of materials
- Invoices for work carried out / due to be carried out
- Planning Permission applications
- Current address for the owner
- External and Internal photographs
Legislation covering the Empty Homes and Second Homes Premium
Section 11B of the Local Government Finance Act 1992 was introduced by Section 12 of the Local Government Finance Act 2012 and allowed for local authorities to charge an additional 50% Council Tax where properties had remained empty for a period of 2 years or more.
Legislation introduced by the Rating (Properties in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 on 1st November 2018 allows for councils to increase the levels of the premium as shown above.
As of 01 November 2024, and to be implemented from 01 April 2025, The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024 will amend the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 (“the 2003 Regulations”) and prescribe additional classes of dwellings in relation to which a billing authority may not make a determination to apply a higher amount of council tax on long-term empty homes and/or dwellings occupied periodically (often referred to as second homes).
Some of the exceptions are time limited to 12 months and others run for as
long as the dwelling meets the qualifying criteria. The instrument also makes necessary amendments to the Council Tax (Administration and Enforcement)
Regulations 1992, the Council Tax (Demand Notices) (England) Regulations 2013 and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2024, consequential on the introduction of the premium on second homes through section 80 of the Levelling-up and Regeneration Act 2023.