How Council Tax Premiums on Empty Homes and Second Homes Work, who sets them, who pays, and how to challenge mistakes

Opening a council tax bill and seeing an extra charge can feel like a trap door under your feet. One month you’re paying the usual amount, the next it’s doubled because the property is classed as a second home, or “long-term empty”.

These extra charges are called council tax premiums. They’re legal, they’re spreading across England, and from April 2026 the rules tighten again for many empty homes.

This guide explains what the premiums are, who decides them, who’s liable, what exceptions exist, and what to do if your council has it wrong.

What council tax premiums are, and who has the power to set them

A council tax premium is an extra percentage added on top of the normal council tax bill for certain properties. It’s not a separate tax. Think of it like a surcharge, similar to how a parking charge rises if you overstay.

Premiums mainly target two types of homes:

• Long-term empty homes (typically empty and substantially unfurnished for a set period)
• Second homes (furnished homes that aren’t anyone’s sole or main home)

The power to charge a premium comes from national law, but the decision to apply one is normally made locally. In practice, your local council sets whether a premium applies in its area and at what level (up to the maximum allowed). Councils usually vote this through their formal budget setting process, then write it into their council tax billing rules.

Government guidance also sets out how councils should apply exceptions fairly, so the system doesn’t punish people who are acting reasonably (for example, selling a property or dealing with probate). For the clearest official explanation of how these rules are meant to work, read the government guidance on council tax premiums and exceptions.

Premiums are often defended as a way to nudge homes back into use and help fund local services. But residents also have a fair question: if the council can raise more from premiums, will it also cut waste and spend better? A well-run council should start with basics, trim bloated management costs, stop overpaying contractors, and focus on frontline priorities that people notice, like pothole repairs, safer streets, and reliable local transport.

Empty homes and second homes premiums from April 2026, what changes and what exceptions exist

From 1 April 2026, many areas in England will see stronger premium rules, especially for empty homes. The biggest practical change is the trigger point for an empty homes premium. In many cases it drops from two years to one year.

Here’s the simple picture for long-term empty homes from 1 April 2026:

How long the home is empty	Premium added	Total council tax due
1 year or more	100%	200% (double)
5 years or more	200%	300% (triple)
10 years or more	300%	400% (four times)

For second homes, councils have been given powers to charge a premium as well. Many councils have signalled a 100% premium (so, double council tax) from 1 April 2026 for homes that are furnished but not anyone’s main residence.

The detail that trips people up is the exceptions. Premiums aren’t meant to hit every awkward situation. Common exceptions (or time-limited “disregards”) can include homes:

• Actively marketed for sale or let (often for up to 12 months, if you can prove genuine marketing)
• Recently inherited, with a time limit after probate or letters of administration
• Job-related accommodation (where you must live elsewhere for work)
• Undergoing major repairs or structural works (again typically time-limited)

Councils publish their local approach, so it’s worth checking your area’s wording rather than relying on rumour. This example page shows how one council explains charges and categories in plain terms: charges for empty properties and second homes.

Who pays, how councils decide a property’s status, and how to challenge mistakes

Liability usually falls on the owner (or sometimes the resident, depending on the situation and tenancy type). With premiums, the key issue is nearly always classification: is it really a second home, is it genuinely empty and unfurnished, and from what date?

Councils decide this using information they already hold and information you provide, such as council tax account history, inspections, tenancy dates, and sometimes data matches. Mistakes happen, especially when a property changes hands, a tenant moves out, or a family is dealing with illness, care, or bereavement.

A few common “wrong premium” scenarios include:

• The council counts the empty period from the wrong date.
• A home is treated as furnished when it’s not (or the other way round).
• A property is labelled a second home when it’s actually someone’s main home.
• An exception is ignored, even though you meet the conditions.

If you think you’ve been billed wrongly, act quickly and keep it practical. A good approach is:

1. Ask for the decision in writing, including the date they say the premium started and the reason.
2. Send evidence that matches the exception or the correct status. This could be estate agent details for active marketing, probate documents, a work contract for job-related housing, or dated photos and invoices for major repairs.
3. Request a reassessment of the effective date. Many disputes are really date disputes.
4. Pay the bill while you challenge if you can. Council tax enforcement doesn’t usually pause just because you disagree, and costs can snowball.
5. If the council won’t change it, ask about the formal appeal route. Council tax disputes about billing and liability can often go to the Valuation Tribunal for England after the council has considered your challenge.

If you’re renting out, or running short-term lets, take extra care. Councils can mix up second homes, empty homes, and business rates treatment, and one wrong assumption can double your bill. Shelter’s legal overview is a useful explainer of how second home premiums are applied and where they can’t be used: Shelter guidance on second home premiums.

A final point that matters: residents don’t just want tougher charges, they want competent administration. When councils waste money, reduce service levels, or outsource badly, the public ends up paying twice, once through higher bills and again through poorer outcomes. People expect the council to serve the public with the same work ethic households and small businesses live by.

Conclusion

Council tax premiums can be legitimate, but they must be accurate, transparent, and applied with common sense. Check how your council defines second homes and long-term empty homes, watch the dates carefully, and challenge errors fast with evidence.

If you want local government that explains its decisions, cuts waste before hiking charges, and focuses on basics that improve daily life, Join Reform UK. When elections come around, Vote Reform UK, and help Make Britain Great Again by demanding accountable councils that make your money go further.