Council tax rule changes to hit owners of empty and second homes

AUTHORITY SAYS ‘PREMIUM’ CHARGE WILL ‘INCENTIVISE BEHAVIOUR CHANGE’

OWNERS of second and empty homes in Cambridge will see council tax rules change from April 2025.

Cambridge City Council can charge a council tax premium on second and empty homes after new national legislation was brought in last year.

The city council’s strategy and resources committee agreed on the changes during a meeting on March 25. A council spokesperson said the change is intended to bring properties back into use for permanent occupation.

The changes will see a council tax premium of 100 per cent applied to homes that have been empty for more than one year – this premium was previously charged after two years.

This will increase to a 200 per cent premium on properties left empty for between five and 10 years, and a 300 per cent premium on properties empty for more than 10 years.

Some second homes will see a 100 per cent council tax premium applied from April 1, 2025. There are currently 1,458 properties designated as second homes in Cambridge, according to the council tax system.

The application of a 100 per cent premium on second homes within Cambridge could generate around £1 million in additional council tax revenue, according to a report from the strategy and resources committee.

There are currently 54 homes being charged a 100 per cent premium after being left empty for more than two years.

Exceptions to the new rules will include properties undergoing probate, properties actively marketed for sale or let, and properties undergoing major repair.

The exceptions also include property occupied as part of someone’s job.

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Cambridge City Council spokesperson said: “All local authorities now have the power to charge additional council tax (a ‘premium’) on those properties, which is intended to create a disincentive for owners to leave property empty for long periods and bring properties occupied intermittently back into use and made available for permanent occupation.

“Long-term empty property and second-home ownership within Cambridge city is significant, and is recognised to have a negative impact in terms of the supply of homes available to meet local housing need.

“Owners of property who choose to leave dwellings intentionally empty for long periods or own a second property where an owner chooses to occupy infrequently and has their main home elsewhere will be impacted.

“The use of premiums is intended to help incentivise behaviour change that will increase the supply of available housing, which can help reduce pressure on the demand for housing.”

Long-term empty property and secondhome ownership within Cambridge city is significant.

City council

YUI MOK/PA WIRE The charge of a premium on second and empty homes could bring in an extra £1 million in revenue for the city council

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