Council tax for landlords with empty property: 2026 premiums

The basic position: owner liable for empty properties

Section 6 of the Local Government Finance Act 1992 sets out the hierarchy for council tax liability. When a property has no resident, the council moves down the hierarchy to the owner. So an empty rental property between tenancies, an empty inherited property awaiting sale, an empty buy-to-let undergoing renovation, or a vacant family home are all owner-liable for council tax.

For landlords this means council tax becomes a fixed cost during voids. The exact amount depends on how the council treats short-term empty properties (some still offer a discount of 25 or 50 per cent for the first month, but most have phased this out), and on how long the property has been empty (the empty-home premium kicks in at the 12-month threshold).

The empty home premium schedule

From 1 April 2024 the empty-home premium was redefined under section 11B of the Local Government Finance Act 1992, as amended by the Levelling Up and Regeneration Act 2023. The schedule of premiums is:

• 1 to 5 years empty: standard bill plus 100 per cent premium (200 per cent of standard)
• 5 to 10 years empty: standard bill plus 200 per cent premium (300 per cent of standard)
• 10 years or more empty: standard bill plus 300 per cent premium (400 per cent of standard)

Councils can choose to apply these premiums; the legislation gives them the power but does not require them. The vast majority of English councils have adopted the full schedule as part of their annual budget. The Local Government Association publishes an annual survey of which councils have adopted which premium tiers; in 2025/26 around 90 per cent of English councils had adopted at least the 100 per cent premium.

The reduction from 24 to 12 months

Before April 2024 the empty-home premium did not start until a property had been empty for two years. The Levelling Up and Regeneration Act 2023 reduced the trigger to 12 months. The intent was to incentivise property owners to bring empty homes back into use faster, particularly in areas with housing pressure. The change applies in England; Wales has its own regime with similar but not identical timing.

For landlords with a longer void this means the standard 12 month grace period between tenancies (or during renovation) is now the threshold rather than the bottom of a 24-month buffer. A property that has been empty for 13 months can face the 100 per cent premium. For a Band D property at the national average of £2,392 a year, the premium adds £2,392 to the annual bill, taking the total to £4,784.

Exemptions from the empty home premium

The empty-home premium does not apply in several specific circumstances set out in the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2003 as amended. The main exemptions include:

• Properties being actively marketed for sale or let (the exemption normally runs for 12 months from the property becoming empty)
• Properties where the owner has died and probate has not been granted
• Properties where the owner is in residential care or hospital and the property was their main residence
• Properties that have been repossessed by a lender
• Properties annexed to another property and used as part of the main residence
• Properties undergoing major repair work that prevents occupation (Class A and Class C exemptions vary by council)
• Properties forming part of an estate that has been left vacant after the owner died (Class F exemption typically for up to 6 months)

The exemptions are not automatic. The landlord has to apply to the council, normally with evidence such as marketing screenshots, builder's reports, probate documents or hospital admission paperwork. Once granted, the exemption is shown on the council's records and the premium is not charged.

The second homes premium (distinct from the empty-home premium)

From 1 April 2025 a separate second homes premium can be charged at up to 100 per cent of the standard bill. This applies to properties that are furnished but not occupied as anyone's main residence. Landlords with a holiday let, a pied-a-terre, or a property kept furnished but unused by family may face the second homes premium rather than the empty-home premium.

The distinction matters: an empty unfurnished rental between tenants is subject to the empty-home premium schedule (starting at 12 months empty), while a furnished holiday let is subject to the second homes premium from day one (subject to the property meeting the holiday-let definition for business rates rather than council tax, in which case it leaves the council tax regime entirely). Most councils have adopted the second homes premium for 2025/26 and 2026/27, with some Welsh councils charging up to 300 per cent under the more aggressive Welsh regime.

Practical implications for landlords

The reduction to a 12-month trigger has changed the economics of long voids. A landlord refurbishing a property for 18 months now faces an additional £2,392 (Band D average) on top of the standard council tax, plus any empty-property discount foregone. Most landlords now plan refurbishments and vacancies more carefully to avoid the premium tier.

The marketing exemption is the main practical tool. As long as a property is being actively marketed for sale or let, the exemption applies for the first 12 months. Landlords who can prove ongoing marketing (regular price reductions on Rightmove or Zoopla, instructions to multiple agents, viewings logged) can extend the grace period to the full 12 months. After that, the exemption falls away even if marketing continues.

Reporting empty properties to the council

Landlords have a duty under the Council Tax (Administration and Enforcement) Regulations 1992 to notify the council of changes in occupancy. A property going from occupied to empty has to be reported within 21 days, and a property going from empty back to occupied also has to be reported. Failure to report can result in a £70 civil penalty under regulation 11 of the regulations.

Notification is normally done through the council's online portal. The landlord supplies the start date of the void, evidence of any marketing, and any exemption applied for. The council then updates the records and issues a revised bill. If a tenant has just moved out, the landlord should also provide the tenant's name and the move-out date, so the council can settle the tenant's final bill.

HMOs and the empty home premium

A licensable HMO that is partially empty (for example, 3 out of 5 rooms occupied) is not subject to the empty-home premium because the property as a whole is occupied. The premium only applies to properties that are wholly empty. Landlords with HMOs that have rotating voids in individual rooms therefore do not face the premium even if individual rooms are empty for long periods.

A fully empty HMO between tenancies is subject to the empty-home premium on the same schedule as any other property. The Council Tax (Liability for Owners) Regulations 1992 still apply to the underlying liability (landlord-liable) but the premium overlay is the same.

Related scenarios

For other tenancy structures see our single-let renter page, HMO tenant page, Airbnb host, and student house pages. For per-band cost see Band D cost 2026/27.