Council to seek approval for tax premiums on empty, unoccupied and second homes

Following a nine-week public consultation, Cabinet members will be asked to approve plans to introduce Council Tax for empty, unoccupied and second homes at the next Cabinet meeting.

The consultation, which took place between 11 October – 13 December 2024, found that members of the public were in favour of the move, with 47% of respondents strongly agreeing and 18% agreeing to the changes. 

If approved by Cabinet, the proposed changes will include a 100% Council Tax premium (twice the normal rate) on properties that have been unoccupied and substantially unfurnished for at least one year, effective from April 2025. The changes will also include the introduction of a 100% Council Tax premium on second homes, effective from April 2026. 

These changes are in line with the new guidance rules introduced by the Levelling Up and Regeneration Act 2023 where councils can now apply the Council Tax premium for long-term empty homes after one year instead of the previous two-year requirement. The Act also allows councils to introduce a Council Tax premium of up to 100% on second homes.  

The measures aim to bring empty properties back into use, encouraging property owners to live in or sell their empty homes. This will help to add more homes into the local housing market and reduce the number of underused properties, ensuring that housing is available for residents who need them. The measures will also generate significant revenue with an estimated £1.6m of additional Council Tax. 

Councillor Shiraz Khan, Cabinet Member for Housing, Strategic Planning and Regulatory Services said: 

I am delighted to see that the public have supported this move. By introducing Council Tax charges on empty, unoccupied and second homes, we are aiming to encourage property owners to live in or sell their empty homes. In doing so, we will see significant benefits and more housing on the market for those who need homes.

These proposals will bring great benefit to residents in Derby by maximising the potential of vacant housing stock within the city. It will also bring significant benefits to the city by generating an estimated £1.6m of additional Council Tax which will help us towards delivering and improving our services.

The Cabinet meeting will take place on Wednesday 12 February and can be viewed on Derby City Council’s YouTube channelOpens in new tab.