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Department for Transport,
Local Government and the Regions
Council Tax:
A summary paper on proposed changes for
second homes and long term empty homes
Council Tax: a consultation paper on proposed
changes for second homes and long-term
empty homes
Owners of second homes and properties which have
been empty for long a time currently receive a 50%
discount on their council tax bill. The Government
proposes to allow local authorities to reduce or end this
discount for second homes and long-term empty
properties.
The consultation on these proposals will be of interest
to owners of second and long-term empty homes. It will
also be of interest to people who live in areas with high
concentrations of second homes or who live near longterm empty properties.

Main Consultation Paper
This leaflet explains:
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

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the main proposals
the current arrangements and reasons for change
how the proposed changes may benefit or affect
you
the main issues on which views are being sought
how you can register your views
What are the main proposals?
These are to allow local authorities to:


Remove or reduce the existing 50% discount for
second homes (defined as furnished dwellings
which are no-one’s main residence).
Remove or reduce the existing 50% discount for
unfurnished long-term empty homes – and to
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
decide how long a property remains empty
before council tax is due.
Grant additional relief in circumstances that are
not already covered by the current national
discounts and exemptions.
The Government also invites views on how the
additional council tax raised by local authorities which
remove or reduce the discounts for second homes and/or
long term empty properties should be distributed. Views
are sought on whether this should be ring-fenced for
housing purposes or whether authorities should be free
to spend it on other local priorities.
What are the current arrangements?
There are currently 23 classes of exempt dwelling
which cover a wide range of circumstances. These are
listed at the back of this leaflet.
Unless exempt, council tax is payable in respect of a
dwelling regardless of whether it is occupied or not.
However, a 25% discount applies to single person
households and a 50% discount applies if the dwelling
is no-one’s main home.
In Wales, local authorities can already choose to reduce
or end the 50% discount for second and holiday homes
in their areas. In England, however, local authorities
have to apply the discount.
Local authorities in England can only grant exemptions
in circumstances set out at the back of this leaflet. They
have no freedom to adjust council tax discounts for
second homes or for long term empty homes. They
cannot give additional relief to deal with hard cases or
to tackle unforeseen local problems such as flooding or
foot and mouth.
People on low incomes can claim council tax benefit for
their main home but will not be entitled to benefit for a
second property.
Why change this?
Second homes and long-term empty dwellings
The impact of second homes and long-term empty
properties vary from area to area. The prevalence of
second homes can have a significant impact on some
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communities. High demand for second homes can affect
property prices, driving locals out of the housing
market. In such areas, giving discounts to those able to
afford a second home can seem unfair. Also, reduced
occupancy will reduce demand for local services such
as the local bus service, the village shop, pub and so on.
There are also a large number of homes that have been
empty for a considerable time. Long-term empty homes
can cause considerable blight to local communities and
act as a honey pot for crime and anti-social behaviour.
They deny homes to those in housing need, are a drain
on local resources (e.g. environmental health, policing)
and in large concentrations can create ghost towns.
Long-term empty homes also increase pressure for new
house building on green field sites. The Government’s
policy is to encourage owners to bring long-term empty
homes into use. One of the ways it can do this is to
increase the council tax for long-term empty homes.
New powers to grant discounts and exemptions
The Government believes that, if local authorities are
able to end discounts for second and long term empty
homes, it is only fair that they should also be able to
grant new discounts and exemptions where they
consider it appropriate to do so. Local authorities will
be able to create new classes of exemption to deal with
local problems, such as a flooding, and grant relief on a
case by case basis where individual circumstances
warrant this.
I live in an area with many second homes and cannot
afford to buy locally. How will I benefit from these
proposals?
Your local authority will be able decide whether to
apply the 50% discount for second homes in your area.
Over time, ending the discount may decrease the
pressure for housing to be used as second homes. The
authority could also use the additional money raised to
help provide more affordable homes for local residents
and low paid workers.
I own a second home. How will I contribute?
If the local authority where you have your second home
chooses to remove or reduce discounts for second
homes, you will be liable to pay more council tax.
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I live on a road with a number of long-term empty
homes. How will the proposed changes help improve
my neighbourhood?
Ending the discount in your area would give owners of
long-term empty homes a greater financial incentive to
bring them back into use. Furthermore, your local
authority could spend the additional money raised on
employing an empty homes officer to work with owners
on tackling the reasons why properties remain empty for
long periods. Letting or selling such properties would
benefit owners whilst ensuring that the full council tax
continued to be paid by the tenants or new owners.
I own a property which has been empty for some
time. How will the changes affect me?
Your local authority will be able to decide whether to
apply the 50% discount and for how long. For example,
they may decide that, once any period of exemption has
ended, you will benefit from the 50% discount for a
further 6 months before the full council tax becomes
payable.
Local authorities could use the additional money to help
owners find ways to bring their empty homes back into
use, for example, as part of a wider regeneration
programme. Owners of long-term empty homes could
benefit in the longer term.
I own a property that I let to tenants and it is
occasionally empty for longer than 6 months
between lets. How will the proposals affect me?
Dwellings which are left vacant are exempt for up to six
months. Whether you will receive a 50% discount after
that will depend on the decisions taken by the local
authority in whose area your property is situated. They
will be able to decide whether to apply the 50%
discount in their area and for how long.
What if I cannot afford to pay the full council tax?
Authorities will be able to decide whether it is
appropriate to end the discount in their area. For
example, in areas where the supply of housing outstrips
demand, they may decide to grant a 50% discount for
long-term empty homes. They will also be able to create
new discounts and exemptions where they consider this
is justified.
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Even in areas where a discount is not given for long
term empty homes because, for example, demand for
housing outstrips supply, authorities will still be able to
grant relief on a case by case basis.
My property is currently exempt from council tax.
How will the proposed changes affect me?
The current classes of exempt dwelling at the back of
this leaflet will continue to apply. Local authorities will
not be able to change these. However, they will be able
to create new exemptions and grant relief on a case by
case basis.
If you are receiving one of the time limited exemptions,
for example, because the property is in need of major
repairs, you will be liable for the rate of council tax
which applies in the area once the exemption expires.
I currently receive a 25% or 50% discount on my
main home – will I lose this?
No. The proposed changes will only affect dwellings
which are no-one’s main home.
What are the main issues on which views are being
sought?
We would particularly welcome your views on the
following questions.
Do you agree that local authorities should be able to
reduce or end the discounts for second homes?
Should this apply to long-term empty homes as well?
Should local authorities also have powers to create their
own exemptions and discounts, including powers to
grant relief on a case by case basis?
Should the additional tax raised be shared across all
local authorities, or should it be retained locally?
Should the money be retained for just second homes, or
for long-term empty homes as well?
Should the money be ring-fenced for housing purposes,
or should authorities be free to spend it on other
priorities?
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Do you agree that local authorities should meet the costs
of any additional exemptions or discounts that they
grant?
How do I register my views?
In order to take your views into account, these should
reach us by 15 February 2002. Please let us know if
you wish your response to remain confidential. You can
e-mail responses to council.tax@dtlr.gov.uk or send
paper responses to:
Barbara Paterson
LGF2, DTLR
Zone 5/H5, Eland House
Bressenden Place
London SW1E 5DU
This leaflet is a summary of the consultation paper.
If you wish to receive more leaflets or a copy of the full
document, which also sets out options for how the
additional proceeds are used, telephone 0870 1226 236
or view the DTLR website at:
http://www.local.dtlr.gov.uk.
The following classes of exempt dwellings are
prescribed in legislation:
Class Exemption for:
A
Empty and substantially unfurnished
dwellings where works are required,
underway or recently completed (valid for
up to 12 months)
B
Empty dwellings owned by charities
C
Dwellings left empty and substantially
unfurnished (valid for up to 6 months)
D
Dwellings left empty by prisoners
E
Dwellings left empty by patients in hospitals
and care homes
F
Dwellings left empty by deceased persons
G
Dwellings where occupation is prohibited
by public law
H
Empty clergy dwellings
I
Dwellings left empty by people receiving
care
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J
Dwellings left empty by people providing
care
K
Dwellings left empty by students
L
Repossessed dwellings
M
Halls of residence
N
Dwellings occupied only by students or
school leavers
O
Armed forces' accommodation
P
Visiting forces' accommodation
Q
Dwellings left empty by bankrupts
R
Empty caravan pitches and boat moorings
S
Dwellings occupied by minors only
T
Empty annexes which cannot be let
separately
U
Dwellings occupied only by persons who
are severely mentally impaired
W
Annexes occupied by dependent relatives
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