Empty Homes Premium Rates: 100%, 200% and 300% Explained
How the Stepped Premium System Works
England's empty home council tax premium climbs the longer a property sits unoccupied and substantially unfurnished. The premium is not a flat charge — it escalates at three statutory thresholds set by the Levelling-up and Regeneration Act 2023.
The maximum premium percentages that a billing authority can charge are:
- After 1 year: 100% premium on top of the standard band charge (total = 200%)
- After 5 years: 200% premium (total = 300%)
- After 10 years: 300% premium (total = 400%)
These percentages are calculated against the full council tax charge for the property's band, including county, district, police, fire, and parish precepts.
What the Numbers Look Like in Practice
On a Band D property with a standard annual charge of £2,150:
| Empty duration | Premium rate | Premium amount | Total annual bill |
|---|---|---|---|
| Under 1 year | 0% | £0 | £2,150 |
| 1–5 years | 100% | £2,150 | £4,300 |
| 5–10 years | 200% | £4,300 | £6,450 |
| 10+ years | 300% | £6,450 | £8,600 |
A property empty for a decade costs four times what an occupied home in the same band pays. Monthly, that is roughly £717 compared with £179 for an occupied property.
Why the Rates Are Not Uniform Across England
Charging premiums is discretionary. Each billing authority must pass a resolution to adopt them, and they can set rates anywhere between 0% and the statutory ceiling. Most councils (over 80%) now charge the maximum, but a few set lower rates or apply premiums only above certain duration thresholds.
Your annual council tax demand notice will state the premium percentage your council applies. If the rate is not shown, contact the revenues department directly.
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The One-Year Trigger Is Relatively New
Before 1 April 2024, the premium could not start until a property had been empty for two continuous years. The Levelling-up and Regeneration Act 2023 lowered this to one year. Older guidance you find online — including on some councils' own websites — may still reference the two-year threshold. Trust your most recent demand notice and the statutory guidance published by the Ministry of Housing, Communities and Local Government in November 2024.
Can You Reduce the Premium?
Statutory exceptions can shield you from the premium altogether while you remain liable for the standard charge. Properties actively marketed for sale or let, undergoing major structural repairs, or in qualifying probate cases may qualify for an exception, subject to the time limit for that class. A change of owner does not by itself reset the empty clock or create a general national exception.
Beyond exceptions, Section 13A(1)(c) of the 1992 Act gives councils discretionary power to reduce any council tax bill — including the premium — in cases of severe financial hardship. Applications go to your billing authority's revenues department.
Our Empty Home Council Tax Premium guide includes a rate calculator worksheet and walks through the exception evidence requirements council by council.
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