Council tax: empty properties

Local authorities in England, Scotland and Wales have considerable discretion over the levels of council tax discount available on unoccupied properties. They can choose whether to give council tax discounts on certain classes of unoccupied property. They may also require full council tax payment from the owners of empty second homes, properties undergoing major repair, or properties that are ‘unoccupied and substantially unfurnished’.

Some classes of property are exempted from the power to reduce discounts on unoccupied properties.

Local authorities may also set an ‘empty homes premium’ for properties that have been empty for over a specified period. The maximum amount of the premium, and the scenarios in which the premium may be levied, vary between England, Scotland and Wales.

In Wales, powers for local authorities to introduce a ‘second homes premium’ were introduced in 2017 for properties that are empty and furnished. A second homes premium was introduced in England from April 2025, and the Scottish Government introduced one from April 2024.

Each country operates a number of exceptions from the empty homes premium and second homes premium, meaning that the premiums cannot be applied to certain classes of property. However, the normal rate of council tax can still be payable on properties that are excepted from a premium.