Changes to the Empty Homes Premium, and Second Homes Premium proposed by Central Government have been approved, and are set to come into force with effect from the 1st November 2024.
After a period of consultation and the subsequent change of government, the changes to the empty and second home premium prescribed exemptions were laid before parliament on the 8th October, and include:
An empty or second homes premium may not be charged in relation to dwellings which are being actively marketed for sale or let for a period of up to 12 months. A dwelling will not fall within the relevant exception to the premium for a further period unless it has been sold (in the case of a dwelling which has been marketed for sale) or subject to a tenancy granted for 6 months or longer (in the case of a dwelling which has been marketed for let).
An empty or second homes premium may not be charged in relation to a dwelling which has been exempt under Class F of the Council Tax (Exempt Dwellings) Order and has undergone probate (for a period of up to 12 months after the grant of probate).
A second homes premium may not be charged in relation to dwellings which are periodically occupied in certain job-related circumstances; a pitch occupied by a caravan or a mooring occupied by a boat; or where a planning condition prevents permanent occupancy.
The empty homes premium may not be charged, for a period of up to twelve months, in relation to a vacant dwelling which is undergoing major work to make it habitable, or structural alteration.
Proposed as part of the Levelling Up and Regeneration Act, these changes aim to support eligible owners in the short term financially, whose actions are proactive in seeking to sell their property or undertake major works to make it habitable. Whilst it is unlikely that such amendments and exemption additions will have an immediate effect in time for the Council Taxbase release in October/November, it is expected that given time, such changes will affect the reporting of empty homes, and increase the definition types for consideration when compiling statistics on empty homes.
Empty homes officers and owners alike, are reminded that those properties liable for the empty homes premium that have remained empty for over two years, that they are eligible for a VAT reduction on elements of their refurbishment, and that existing and new owners of such properties should be encouraged to make use of this legislation in order to support the property’s return to use.
The details of the changes made can be found on the Government’s Legislation website here: www.legislation.gov.uk/uksi/2024/1007/contents/made