Cabinet backs council tax premium to bring empty homes back into use

Recent changes to Government legislation mean councils can now charge owners of long-term empty properties a premium on council tax after a property has stood empty for a year.

Under the legislation, the premium can increase the longer a property stands empty - with a report to last night's (1 December) meeting of cabinet recommending the borough council introduce the following premiums:   

• 100 per cent (double the standard council tax charge) for properties empty for one year to less than five years
• 200 per cent (triple the standard council tax charge) for properties empty for five years to less than ten years 
• 300 per cent premium (quadruple the standard council tax charge) for properties empty for more than ten years

A property must be unoccupied and substantially unfurnished for a period of a year or more to qualify as a long-term empty property.

Properties excluded from the council tax premium include homes being actively marketed for sale or rent and homes which have recent - or ongoing - major structural repairs (for a maximum period of 12 months).

Cllr Ish Mistry, deputy leader of Rugby Borough Council and portfolio holder for finance and performance, legal and governance, said the council was determined to use all the powers at its disposal to bring long-term empty properties back into use.

"Our latest data suggests we have 324 properties in the borough classified as long-term empty homes and we want the council tax premium to incentivise property owners to bring these much-needed homes back to the housing market," Cllr Mistry said.

"We plan to introduce the new premiums from 1 April 2026, but the message goes out today - owners of empty homes in the borough must prepare now for the new premium charges or, ideally, start the process of bringing the empty homes back into use."

Cllr Bill Lewis, Rugby Borough Council's Liberal Democrat group spokesperson for finance and performance, legal and governance, said: "Houses should be lived in and empty properties are a disgrace when so many people are desperate to rent or buy a home.

"By increasing council tax rates on empty homes, we are incentivising these homeowners to either sell or rent their properties and bring them back into use."

Cabinet also backed plans to introduce a single council tax premium on 'second' homes - defined as furnished properties which are not the sole or main residence of any person.

A premium of 100 per cent (double the standard council tax charge) looks set to be introduced from 1 April 2027 for properties which have met the definition of a second home for a minimum of one year.

Current data suggests the borough has 187 properties which meet the 'second home' definition.

The introduction of council tax premiums on long-term empty homes and second homes looks set to be considered at a meeting of full council next Wednesday (10 December).