An empty property between tenancies used to be a manageable cost — void weeks or months where you pay standard council tax and get on with finding a new tenant. That grace period has been quietly cut in half, and a separate premium introduced alongside it catches landlords who don't even realise it applies to them.

This edition covers the empty property premium schedule, the reduction from 24 months to 12, who's actually liable for council tax during a void, the second homes premium, and the exemptions that can save you real money if you use them correctly.

You must pay Council Tax on a property if it is empty and unfurnished, empty and furnished, a second home that is not job related, or uninhabitable. There is no automatic exemption for an empty rental property simply because it doesn't have a tenant.

The liability during a void period generally falls to the landlord, not a departing tenant. A tenant will only be liable for an unoccupied period if it falls within the period of their tenancy and they have not moved in, or have moved out before the tenancy has legally ended. Once a tenancy has properly ended — correct notice served, keys returned — council tax liability reverts to the landlord for as long as the property sits empty.

Landlords are liable for council tax on empty properties under Section 6 of the Local Government Finance Act 1992. From April 2024 the empty-home premium starts after 12 months, down from 24.

This is the single most important change for landlords to understand. The premium doesn't kick in from day one of a void — properties empty for less than 12 months pay the standard rate with no premium. But the buffer that used to exist — a full two years before any premium applied — has been cut in half.

For landlords with a longer void — a major refurbishment, a difficult-to-let property, a probate delay — this means the standard grace period is now the threshold rather than the bottom of a much larger buffer. A property that has been empty for 13 months can face the 100% premium.

Once a property crosses the 12-month threshold, the escalating premium schedule applies:

1 to 5 years empty: 100% premium — you pay double the standard council tax bill.

5 to 10 years empty: 200% premium — you pay triple the standard bill.

10 years or more empty: 300% premium — you pay four times the standard bill.

The one-year period starts from the date the property first became empty and continues whilst the conditions apply — critically, it does not restart if there is a change in ownership. A landlord who buys a property that's already been sitting empty for eight months inherits that clock, not a fresh one.

For most landlords the relevant figure is the first tier: a genuinely long void — beyond a year — doubles your council tax bill on that property until it's occupied or sold.

This is the part of the current rules that catches landlords who don't realise it applies to them at all. Section 80 of the Levelling Up and Regeneration Act 2023 gave local authorities in England the power to charge a Council Tax Premium of 100% on second homes from 1 April 2025.

The second homes premium is entirely separate from the empty property premium, with a critical distinction: it applies to furnished properties that are no one's main residence, and it can apply immediately — there is no 12-month grace period at all.

This matters directly for landlords in specific situations: a furnished property between tenants that you're holding onto rather than actively marketing, a furnished holiday let outside peak season, or a property you're using intermittently yourself. If it's furnished and nobody's living there as their main home, some councils will apply the second homes premium from day one, stacking on top of your standard bill regardless of how briefly the property has been empty.

The practical distinction that determines which premium — if either — applies: an empty and unfurnished property is assessed against the long-term empty premium with its 12-month threshold. A furnished property that's nobody's main residence can trigger the second homes premium immediately. Leaving a property furnished during a void, intending to make re-letting easier, can inadvertently create liability you wouldn't have faced by clearing it.

Not every empty property pays the premium. Genuine exemptions exist, though they require action to claim — none are automatic.

Actively marketed for sale or let — this exemption normally runs for 12 months from the property becoming empty, provided you can evidence genuine, ongoing marketing. A property sitting on Rightmove with regular price checks and viewings booked is a very different position to one quietly forgotten about.

Probate not yet granted — where an owner has died and probate or letters of administration haven't been granted, an exemption applies, typically for up to six months once probate is granted before the premium considerations restart.

Owner in care or hospital — where the property was the owner's main residence before they moved into residential care or hospital.

Repossessed by a lender — properties taken back by a mortgage lender.

Major repair work preventing occupation — Class A and Class C exemptions vary significantly by council, and some have tightened these considerably in recent years. Don't assume a property undergoing renovation is automatically exempt — check your specific council's current policy.

Annexed properties — used as part of a main residence.

None of these exemptions apply automatically. You must apply to your local authority and provide evidence — marketing records, a solicitor's confirmation of probate status, medical or care confirmation. A landlord who assumes an exemption applies without formally claiming it will simply be billed the full premium.

For licensed HMOs sitting empty between occupiers, some councils apply different rules given the property's licensed status, but this varies significantly by authority — there's no single national position. If you're managing an HMO with a genuine void across all rooms, check your specific council's approach rather than assuming HMO status provides blanket protection from the premium.

This edition connects to several running themes. A property held empty during an HMO relicensing gap (Edition 17), or empty while resolving a PRS Database registration issue (Edition 18), or vacant following a Ground 1A sale that then falls through with the 12-month re-letting ban still active (Edition 30) — all of these scenarios now carry a council tax dimension that compounds whatever else is already going on.

A landlord dealing with a Ground 1A property that can't be re-let for 12 months isn't just losing rental income during that period — if the void crosses the 12-month council tax threshold as well, the two timeframes can overlap in a way that turns an already expensive compliance situation into a genuinely costly one.

✅ Know your void clock starts the moment the property becomes genuinely empty — and doesn't reset on a change of ownership if you're buying a property that's already sat vacant.

✅ Budget for the 12-month threshold, not 24 — the grace period landlords may remember from a few years ago has been cut in half.

✅ Decide whether to leave a void property furnished or unfurnished carefully — furnished can trigger the second homes premium immediately, with no grace period at all.

✅ Actively market and document it if you're trying to sell or let — the marketing exemption requires evidence, not just an intention.

✅ Check your specific council's current exemption policy — Class A, Class C and discretionary exceptions vary significantly and some councils have tightened them recently.

✅ Apply for exemptions formally — none are automatic. No application means no exemption, regardless of your actual circumstances.

✅ Factor council tax into any Ground 1A or Ground 1 timeline — a property restricted from re-letting for 12 months that also crosses the empty property premium threshold faces two compounding costs.

Council tax on empty properties rarely gets the attention that deposit protection, licensing or Section 8 grounds get in landlord conversations — but the numbers are significant. A genuinely long void now doubles your council tax bill after just 13 months instead of 25, and a furnished property between tenancies can trigger a separate 100% premium with no grace period at all.

The landlords who avoid this are those who actively manage void periods rather than letting them drift — marketing promptly and documenting it, deciding deliberately whether to furnish or clear a property between tenancies, and claiming exemptions formally rather than assuming they apply.

Track void start dates, council tax premium thresholds and exemption claim status across your portfolio — so a long void never quietly crosses the 12-month line unnoticed.

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Coming up next edition — Student lets: how the Renters Rights Act treats HMO student housing differently.

The Landlords Brief is published for UK landlords. Subscribe free at thelandlordsbrief.co.uk. This newsletter is for general information only and does not constitute legal or financial advice. Council tax rules and exemptions vary by local authority — always confirm with your specific council.