Empty Homes Premium Legislation England: The Laws Behind Your Council Tax Bill

The Legislative Stack Behind Empty Home Premiums

England's empty homes premium didn't appear overnight. It sits on three decades of legislation, each layer adding new powers for councils to charge more on vacant properties.

The foundation is the Local Government Finance Act 1992 (LGFA 1992), which created council tax. Section 11B, inserted by the Local Government Finance Act 2012, gave billing authorities discretionary power to charge a premium on properties unoccupied and substantially unfurnished for two years or more.

The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 tightened the ratchet. It introduced the stepped premium tiers for properties empty five years or longer — up to 200% at five years and 300% at ten years — on top of the standard council tax charge.

The Levelling-up and Regeneration Act 2023

Section 79 of the Levelling-up and Regeneration Act 2023 (LURA 2023) made the biggest change in a decade. From 1 April 2024, it:

• Lowered the trigger from two years to one year. A property that has been unoccupied and substantially unfurnished for 12 months can now face a 100% premium, doubling the bill.
• Inserted Section 11C into the LGFA 1992, creating a separate premium of up to 100% on second homes (furnished but not anyone's main residence), effective from 1 April 2025.
• Added Section 11D, empowering the Secretary of State to prescribe exception classes for second home premiums.

The practical effect: a Band D property in an area with a £2,150 base charge that sits empty for a year faces another £2,150 in premium. After five years the premium can reach £4,300, making the total bill £6,450. After ten years, the premium can reach £6,450 on top of the base bill, for a total of £8,600.

SI 2024/1007: The Exception Classes That Protect You

The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024 (SI 2024/1007, in force from 1 November 2024) inserted Exception Classes G through M into the existing 2003 Regulations. These are mandatory exceptions every council in England must recognise — local policy cannot override them.

The exception classes that matter most for empty property owners:

• Class G — actively marketed for sale at a reasonable price (up to 12 months)
• Class H — actively marketed for let at a reasonable rent (up to 12 months)
• Class I — post-probate property, starting from the date probate is granted (up to 12 months)
• Class M — undergoing major structural repairs or alterations (up to 12 months)
• Class E — armed forces accommodation where the person would otherwise live in the property

These are separate from the older statutory exemptions under SI 1992/558 (like Class F for a property where someone has died), which remove base council tax liability entirely rather than just blocking the premium.

How the Legislation Applies in Practice

The MHCLG published formal statutory guidance in November 2024 under Sections 11B(1D) and 11C(4). Billing authorities must have "due regard" to this guidance, which means deviating from it without solid justification opens the door to a challenge.

Key practical points from the legislative framework:

• The premium clock attaches to the property, not the owner. Buying a house that has been empty for 11 months means the premium hits you after one month.
• The six-week rule under Section 11B(3) means occupation or furnishing lasting less than six continuous weeks does not reset the clock.
• Councils choose whether to charge premiums and at what rate, up to the statutory cap. Over 80% of English billing authorities have adopted maximum rates.
• Section 13A(1)(c) gives councils discretionary power to reduce liability in individual hardship cases, separate from the mandatory exceptions in SI 2024/1007.

What This Means for Your Property

Understanding the legislation matters because your council's decision notice should cite the specific statutory provision it relies on. If it doesn't, or if it cites the wrong one, that strengthens your hand in a Section 16 grievance.

If you're facing a premium or working out which exception applies, the Empty Home Premium Guide walks through each exception class, the evidence each one requires, and the formal dispute process if your council gets the law wrong.

See more England guides →