Council Tax Premium Letting Void: What Landlords Pay Between Tenants

Why the Premium Hits During Voids

When a tenant moves out and your rental property sits furnished but empty between lets, it meets the Section 11C definition of a second home: substantially furnished, no resident. If your council has adopted the 100% premium, your council tax bill doubles from the first day of the void.

This catches many landlords off guard. A six-week void to redecorate between tenancies suddenly carries the premium, and councils do not automatically apply exceptions — you have to claim one.

Class H: The Letting Exception

Class H of the 2024 Prescribed Classes Regulations provides an exception for properties actively marketed for residential letting on reasonable commercial terms. Every English council that charges the premium must honour it.

Class H can also apply to qualifying long-term empty homes, not only furnished second homes.

To qualify, you need genuine, ongoing marketing through standard channels. That means a signed agreement with a letting agent, public listings showing a realistic rental price, and a willingness to accept tenants. An overpriced listing designed to keep the property empty does not count.

Class H is capped at 12 months from the date marketing began. It ends the moment a tenancy starts or marketing stops.

The 6-Month Re-Claiming Rule

Once a Class H period expires, you cannot claim Class H again on the same property unless the dwelling has been continuously let for at least 6 months since the previous exception ended. This prevents owners from cycling through 12-month exception claims without ever actually letting the property.

In practice: if your first void ran 12 months without finding a tenant, the premium kicks in. You would need to successfully let the property for 6 continuous months before becoming eligible for another Class H exception on the next void.

Evidence to Submit

Your council's revenues department will typically expect:

• A signed agreement with a letting agent or evidence of direct advertising
• Live rental listings showing the monthly asking rent
• A draft Assured Shorthold Tenancy or the terms you are offering
• Proof that the asking rent is reasonable for the area (comparable local lets help)

Submit these when you first notify the council of the void. Waiting until the council bills you the premium creates a backlog that costs you money while the claim is processed.

Furnished Void vs Unfurnished Void

If you strip the furniture out during the void, the property shifts from the second home regime (Section 11C) to the long-term empty regime (Section 11B). That avoids the immediate second home premium — but if the property has been unoccupied for over 12 months, the empty home premium applies instead. For short turnarounds, keeping the property furnished and claiming Class H is usually the cleaner route.

The Second Home Council Tax Premium Guide covers the Class H application in detail, including what counts as "reasonable commercial terms" and how to handle a council refusal.

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