For landlords, the question of council tax liability often crops up during periods when a property is unoccupied. Below, our experts explain whether you need to pay your council tax bill when a property is empty, and outline some of the other important council tax rules to consider.

As a landlord, there may be times when one or more of your properties are left empty, whether due to a gap between tenancies, ongoing renovations, or other circumstances. While tenants are usually responsible for paying the council tax bill for the property, you will often have to start paying council tax yourself if the property is unoccupied. As such, it is important to understand the legal position that applies in these cases. 

Many landlords are surprised to learn that they may be liable for paying council tax when their property is unoccupied. In this guide, we will explain everything landlords need to know about council tax, including who is responsible, potential premiums, exemptions, whether you can avoid paying council tax on an empty property, and how Percy Hughes & Roberts Solicitors can assist.

If you have any questions we have not covered, our specialist landlord solicitors are able to answer your landlord query. You can contact us by completing the enquiry form below or by calling 0151 666 9090. 

What Is Council Tax?

Council tax is a local tax charged on residential properties in England, Scotland, and Wales. It is collected by local councils to fund essential community services such as waste collection, road maintenance, and local policing.

Each property is assigned a valuation band, ranging from A (the lowest) to H (the highest), based on its estimated market value as of 1 April 1991 in England and Scotland, or 1 April 2003 in Wales. The amount payable depends on the property’s band and the council’s tax rate, which varies across regions.

Who Is Responsible for Paying Council Tax?

The responsibility for paying council tax generally lies with the person living in the property. For most rental properties, this means the tenant is liable for council tax payments throughout their tenancy. However, there are situations where the landlord becomes responsible for the tax.

Some key scenarios include:

• Vacant properties: When a property is unoccupied, whether due to a tenancy ending or other circumstances, the responsibility for council tax typically falls to the landlord.

• Houses in multiple occupation (HMOs): In HMOs, where tenants hold individual agreements for different parts of the property, the landlord is usually liable for council tax, even if the property is fully occupied.

• Special tenants: If all the occupants of a property are exempt from paying council tax, such as if they are full-time students, asylum seekers, or individuals under 18, the landlord assumes responsibility for the payments.

The specific rules can vary depending on the type of tenancy and local council policies, so it is essential for landlords to understand their obligations and include clear terms in tenancy agreements to avoid confusion.

Do Landlords Pay Council Tax on an Empty Property?

Landlords are typically responsible for paying council tax on empty properties. When a property is unoccupied, there is no resident to take on the responsibility, so the liability shifts to the landlord.

The rules surrounding council tax on empty properties vary depending on local council policies, but here are the general principles:

• Unfurnished and empty properties: Many councils offer a short-term exemption or discount for properties that are both unfurnished and unoccupied. This relief period is usually between one and three months but varies by council. After this period, landlords are liable for the full council tax amount.

• Furnished but empty properties: If a property is empty but still furnished, landlords are generally required to pay the full council tax without any discount. Such properties are often classified as second homes or holiday lets and are not eligible for exemptions.

• Long-term vacant properties: If a property remains vacant for an extended period, it may be subject to additional charges known as empty property premiums. These premiums are designed to discourage owners from leaving homes unoccupied for long periods.

The financial implications of leaving a property vacant can be significant, so landlords should take care to understand their local council’s policies and plan accordingly to minimise costs.

What Are Empty Property Premiums?

Empty property premiums are additional charges imposed by local councils on properties that remain unoccupied for extended periods. These premiums are designed to discourage property owners from leaving their homes vacant and to encourage the use of available housing stock in response to a recent UK housing shortage.

As of 2024, councils in England can apply the following premiums:

• Properties empty for more than one year: Up to 100% additional council tax.

• Properties empty for more than five years: Up to 200% additional council tax.

• Properties empty for more than 10 years: Up to 300% additional council tax.

The empty property premium is calculated as a percentage of the standard council tax charge, meaning landlords could face significantly higher costs if a property is left unoccupied for an extended period.

These charges are levied at the discretion of local councils, and some authorities adopt more lenient policies than others. Landlords should check with their local council to confirm how these premiums are applied in their area and explore ways to minimise liability, such as letting the property quickly or applying for any relevant exemptions.

Exemptions and Discounts for Empty Properties

While landlords are typically responsible for council tax on empty properties, there are situations where exemptions or discounts may apply. These allowances vary by local council and often depend on the reasons the property is unoccupied. Below are the most common exemptions and discounts landlords may qualify for:

Short-term vacancies

Many councils offer a temporary exemption or discount for unfurnished properties that are empty for a short period, usually between one and three months. This relief is intended to cover transitional periods between tenants.

Renovations or major repairs

Properties undergoing significant structural changes or major repairs may qualify for a discount or exemption. For example, if a property is uninhabitable due to renovations, some councils will provide relief until the work is complete.

Uninhabitable properties

If a property is deemed unsafe or unsuitable for habitation due to severe damage (e.g., fire, flooding, or structural issues), landlords can often apply for an exemption. Supporting evidence, such as a surveyor’s report, is usually required.

Probate and deceased estates

Properties left empty following the death of the owner are typically exempt from council tax until probate is granted. After probate, a further exemption period of up to six months may apply if the property remains unoccupied and ownership has not transferred.

Properties owned by charities

If the property is owned by a charity and its future use will support charitable purposes, it may qualify for a council tax exemption while unoccupied.

Special occupancy cases

Exemptions may also apply if the property’s vacancy is due to specific circumstances, such as:

• The owner is in long-term residential care or hospital.

• The property is being held for someone in the armed forces who is living elsewhere for work.

• Legal restrictions make the property unfit for habitation (e.g., it is pending demolition).

How Can Percy Hughes & Roberts Help?

Understanding council tax responsibilities for empty properties can be challenging, particularly with varying local council rules and the potential for premiums and exemptions. Despite this, it is vital to understand your obligations, as the penalties for non-compliance can be very severe. At Percy Hughes & Roberts, we specialise in providing expert legal advice tailored to ensuring landlords understand their obligations and avoid unnecessary costs.

Our experienced team can assist with clarifying council tax liability during tenant transitions or property renovations and can also address disputes or penalties related to council tax on empty properties to make sure landlords pay council tax when they owe it, and avoid it when they do not.

Percy Hughes & Roberts Solicitors' team of landlord solicitors can help with a wide range of services, including drafting tenancy agreements, advice on tenancy deposit protection, and assistance with tenant disputes. For more information on our landlord services, do not hesitate to contact our expert solicitors today. Call us on 0151 666 9090, or send us your query by email by filling in our online contact form.