Empty house premium council tax

DiamondDuck

We bought a house at an auction that had been repossessed. The property had been empty for five years and had been vandalised. For the first eight months we had to carry out a considerable amount of renovating to bring the property up to a habitable condition, then we decided to move in and make it our home. We often stayed over at our second house at weekends to do the work but due to lockdown, this wasn’t always possible.

Our previous address was put on the market and the sale is still going through. We have been paying 100% council tax on both properties for the full period of having two properties.

We heard that we may be eligible for a 50% discount in council tax for the first six months on our second property as we weren’t actually living there. We contacted the council and they told us that because the property was empty for five years that we are going to be charged the empty house premium at an additional 200%.

Can this be right? I thought that a repossessed property was exempt from council tax and why should we be penalised for the property’s history before we took possession?

Also the council are asking when we furnished the property. We’ve been moving furniture and belongings from our first house to our second house over a period of nine months. There isn’t a specific date that we can say that we moved in. Is there any advice as to how to deal with the council on this.

Batesy1976

DiamondDuck said:

Can this be right? I thought that a repossessed property was exempt from council tax and why should we be penalised for the property’s history before we took possession?

But when you bought it that exemption would have ended.

You're not being penalised, but the clock on empty properties doesn't reset when it transfers to a new owner, it would have to become inhabited again for this to happen.

It's no different if you buy a property (say ex-rental) that is unoccupied during the purchase process.  The clock on an unoccupied discount counts down whilst the process is underway and isn't reset just because the owner has changed.

lincroft1710

A dwelling which has been continuously empty and unoccupied for more than 2 years but less than 5 years may be charged 200% CT. over 5 yrs 300% CT.

Regarding moving in, there must be a date when you consider you were living in your new home whether as a second home or primary residence.

phillw

It seems more complex than moving in date. If it's furnished then it's a second home even if you aren't living there, if it's unfurnished then it's unoccupied.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/357791/140923-CTIL_on_EHP.pdf

It would seem that the earlier the property is furnished the better, of course if there was major renovations then I'd expect that this should stop the clock. However councils interpret the rules the way they want to.

CIS

The period is based on the length of time the property has been both unoccupied and substantially unfurnished - that there were works makes no difference unless it had ceased to be unoccupied and substantially unfurnished during that time period.

Hasbeen

There are a lot of properties requiring renovation etc, sitting empty as prospective buyers/investors do not want to buy and are wary of paying the inflated council tax, if they do. As the exemption has long been finished.

So if someone buys its 200% or 300% ? If they spend money effort and time doing it up? 

Leading to multiple empty properties throughout the UK that could provide homes?

Great council policy/thinking? 

p00hsticks

Hasbeen said:

There are a lot of properties requiring renovation etc, sitting empty as prospective buyers/investors do not want to buy and are wary of paying the inflated council tax, if they do. As the exemption has long been finished.

So if someone buys its 200% or 300% ? If they spend money effort and time doing it up? 

Leading to multiple empty properties throughout the UK that could provide homes?

Great council policy/thinking? 

Councils would say that increasing the council tax on empty properties serves as an incentive for owners to either sell them, (usually by by reducing the price to a more realistic level), or for them to get on to do the necessary renovations to be able to live in them or rent them out.

From looking at the property board. many people seem to consider that a propeprty needs 'total renovation' if it has a perfectly servicable bathroom and kitchen that are more than ten years old!

DiamondDuck

Thanks for your comments and explaining this. It's interesting that the previous owners left several pieces of furniture in the property which we added to with some essentials including a bed. Maybe the council will accept that the property was furnished from day one and not charge the premium. I hope so.

lincroft1710

Hasbeen said:

Great council policy/thinking?  

It was Parliament who instigated the legislation, not local councils

Hasbeen

lincroft1710 said:

Hasbeen said:

Great council policy/thinking?  

It was Parliament who instigated the legislation, not local councils

Thankyou.

Great government /parliament policy, thinking 

I have bought 2 houses recently to renovate and would not buy one that did not offer a discount whilst renovating.

And these properties were the type the estate agent refused to enter when showing.

I DIY myself so takes a bit longer, but I know it is done well.

SO?

Why should I pay the council to take on a property that requires a lot of money spent on it to then pay 200%  plus? Whilst I am doing it?

Just let them stay empty dilapidated and neglected. 

p00hsticks

Hasbeen said:

lincroft1710 said:

Hasbeen said:

Great council policy/thinking?  

It was Parliament who instigated the legislation, not local councils

Thankyou.

Great government /parliament policy, thinking 

I have bought 2 houses recently to renovate and would not buy one that did not offer a discount whilst renovating.

And these properties were the type the estate agent refused to enter when showing.

I DIY myself so takes a bit longer, but I know it is done well.

SO?

Why should I pay the council to take on a property that requires a lot of money spent on it to then pay 200%  plus? Whilst I am doing it?

Just let them stay empty dilapidated and neglected. 

But why would someone want to hang onto a dilapidated property and pay 200% plus council tax rather than sell it ? If you are buying multiple properties at a time but then spending years leaving them empty whislt very gradually 'renovating' them it sounds like you might be part of the problem rather than the solution.....