The definition of an empty property for council tax purposes is a dwelling which has ‘no one resident’ and is ‘substantially unfurnished’. The Act provides that from 1 April 2024, a property can be charged an empty homes premium of 100% after one year, even if it becomes empty before 1 April 2024.
Information on the Levelling-up and Regeneration Act 2023 can be found on the government website.
We agreed at the full council meeting on 21 February 2024 that this premium will apply in North Yorkshire from 1 April 2024.
This premium applies to the property, a change of ownership or tenancy will not affect the premium and the 12-month period does not start again with each change. If when you purchased or leased your property it had already been empty and unfurnished for one year or more, you will have to pay the additional premium. The premium can only be removed by bringing your property back into use.
We want to reduce the number of long-term empty properties and tackle a shortage of affordable housing by encouraging property owners to bring empty homes back into use for local people.
If your property is unoccupied and unfurnished you will have to pay the full current council tax charge during the first 12 months.
Charges that will apply from 1 April 2024
If your property has been empty for:
- up to a year, then you are not charged an additional premium but you must pay a 100% council tax rate
- more than one year, you must pay a 100% premium council tax rate (this means you will have to pay twice the normal rate)
- more than five years, you must pay a 200% premium council tax rate (this means you will have to pay three times the normal rate)
- more than 10 years, you must pay a 300% premium council tax rate (this means you will have to pay four times the normal rate
Second homes additional premiums
The definition of a second home for council tax purposes is a dwelling which has ‘no-one resident’ but is ‘substantially furnished’.
Section 80 of the Levelling Up and Regeneration Act 2023 permits us to apply a premium on second homes. Second home ownership within the North Yorkshire area is significant and is recognised to have a negative impact in terms of the supply of homes available to meet local housing need. The Act requires that the first decision to impose this class of premium must be taken 12 months before the financial year to which it would apply. The decision was taken by North Yorkshire Council on 21 February 2024 to apply this premium.
From April 2025 we will add 100% council tax premium to the bill for any property liable for council tax and classed as a second home. This will result in a 200% council tax charge.
We are expecting there to be a number of exceptions from the charging of this premium but details of these have not yet been confirmed by the government. These details will be updated as soon as this information is known.