Homes in England with no residents will attract a council tax premium of up to 100% from next month as tax reforms aimed at supporting people in areas where empty properties prevent them from finding affordable housing come into force.

Changes brought in by the Levelling Up and Regeneration Act 2023 reduce the time before a property is considered an empty home from two years to one year, meaning that homes that have been empty for one year will be subject to a 100% council tax premium.

The Act also introduced a council tax premium of 100% for substantially furnished homes that are not someone’s sole or main residence, but because councils must determine at least one year in advance of introducing a second homes premium, the earliest a council can utilise the second homes premium is April 2025.

Properties undergoing major repairs or structural alterations will have a 12-month exception from the empty homes’ premium rather than the 6-month exception proposed in the consultation.

Properties being actively marketed for sale or let will have a 12-month exception from the empty homes’ premium. This will provide protections for landlords whose rental property may become empty in between lets or have a gap between tenancy agreements.