Second homes premium
The Levelling-Up and Regeneration Act 2023 provides councils with the power to charge a premium in respect of second homes. North Devon Council made the decision at its meeting on 17 January 2024 to charge a second homes premium.
Second homes for Council Tax purposes are dwellings that are furnished but unoccupied – they are no one’s ‘sole or main residence’. This includes furnished unoccupied properties which may be subject to a planning restriction on occupation.
A 100% premium (twice the standard rate) will apply for these types of properties from 1 April 2025.
The government has made regulations to provide mandatory exceptions to the premium, such as dwellings being actively marketed for sale or let (12 months limit) or dwellings where permanent occupation is prohibited. A full list of the exceptions, together with further guidance relating to the premium, can be found on the Government website.
These exceptions will come into effect from 1 April 2025 and an application will be available for completion from March 2025.
Empty property charges
If your property remains empty and substantially unfurnished for more than one year, a premium will be added to your annual Council Tax bill.
A substantially unfurnished property is defined as one that does not contain enough furniture or white goods to allow someone to comfortably live in it e.g. beds, sofas, tables, fridge, freezer, cooker.
The charges from 1 April 2024 are:
| How long the property is empty | Council Tax charge |
|---|---|
| More than one year | 100% premium (twice the standard rate) |
| After five years | 200% premium (three times the standard rate) |
| After 10 years | 300% premium (four times the standard rate) |
The period a property is classed as being empty starts from the first day it is unoccupied and substantially unfurnished - a change in ownership does not break this period. This means that if the property was empty prior to you purchasing it then you will still incur the additional empty property charges.
The government has made regulations to provide mandatory exceptions to the premium, such as dwellings being actively marketed for sale or let (12 months limit) or dwellings requiring or undergoing major repair (12 month limit). A full list of the exceptions, together with further guidance relating to the premium can be found on the Government website.
These exceptions will come into effect from 1 April 2025 and an application will be available for completion from March 2025.
Do you want help to bring your property back into use? Our empty homes project has a wide range of information and advice on how you can bring empty properties back into use.
It is important you tell us if you furnish your property
Report a home is no longer unfurnished
Empty property discount
Empty, unfurnished properties are eligible for a discount for up to three months. After this period the full amount of Council Tax becomes payable.
The period a property is classed as being empty starts from the first day it is unoccupied and substantially unfurnished - a change in ownership does not break this period. This means that if the property was empty prior to you purchasing you may not be entitled to the empty property discount.
Apply for an empty property Council Tax discount
Empty property exemption
Some empty properties may be exempt from Council Tax or exempt for up to six months if one of the following apply:
- owned by a charity (exempt for up to six months)
- left empty by someone who is now in prison
- left empty by someone who has moved to receive personal care in a hospital or a home
- repossessed properties (in possession of the mortgage company)
- waiting for probate or letters of administration to be granted (and for up to six months after)
- the responsibility of a trustee in bankruptcy
- empty because the law has said it must not be lived in
- waiting to be lived in by a minister of religion
- left empty by students who live elsewhere to carry out their course
- unable to be let separately because they are part of a main property or there is a planning restriction