Empty Properties and Second Homes

Unoccupied properties in Mole Valley that are not in receipt of a discount or exemption are charged the full Council Tax rate. If you believe you may qualify for a discount or exemption from the Council Tax charge, please make an application using our online forms available at:

https://www.molevalley.gov.uk/council-tax/council-tax-discounts/

Long Term Empty Properties

Properties that have been unoccupied and unfurnished for more than one year are subject to a premium resulting in 200% of the Council Tax charge being payable.

For properties that are unoccupied and unfurnished for more than 5 years the total charge is 300% of the Council Tax charge.

For properties that are unoccupied and unfurnished for more than 10 years the total charge is 400% of the Council Tax charge.

Second Homes

From 1 April 2025 a Council Tax premium on second homes will be effective. This will mean a total Council Tax charge of 200% for second homes from 1 April 2025.

For Council Tax purposes, second homes are defined as ‘furnished properties where no one lives, or the owner has a main home elsewhere.’ This premium will include properties that are not being used as a second home but have been left empty but furnished.

Unlike empty properties, the property does not have to be used as a second home for a specific amount of time before the premium will apply. The premium will be chargeable from the first day the property is considered a second home or periodically occupied.

Empty Properties and Second Homes Policy

The Council Tax system allows councils to charge higher rates of Council Tax on properties that have been ‘unoccupied and substantially unfurnished’ for certain periods of time. The aim of this is to encourage owners to bring empty properties back into use.

This provision dates from 2013. Further legislation was passed in 2018 extending the maximum additional charges.

The law sets a maximum charge that a council can make which is referred to as a premium. For instance, after a property has been ‘unoccupied & substantially unfurnished’ for 2 years, an authority in England can charge up to 200% of the normal Council Tax bill.

The amount of the empty properties premium is based on the normal Council Tax band of the property. The band itself is not affected by the empty properties premium.

The Levelling Up & Regeneration Bill 2022-2023 changed the 2-year limit to 1 year. It also introduced a power to set a premium to ‘substantially furnished’ properties that have no permanent resident. This covers properties that are used as second homes by their owner.

Aims & Objectives

Mole Valley District Council cares about its residents. The purpose of this policy is not to unfairly penalise those who have a second home or an empty property that they have an intention to occupy, sell or let, but to increase the number of available properties to those who are currently unable to rent or buy in the area due to the lack of available housing.

Empty Properties

Empty properties are classed as those which are ‘unoccupied’ and ‘substantially unfurnished’. Periods of six weeks or less when the property is occupied/furnished are disregarded for the purposes of calculating the one-year period for the empty properties premium.

‘Substantially unfurnished’ is not defined in Council Tax legislation but is used for the purposes of the empty properties discount regime and the empty properties premium (Section 11A & 11B of the Local Government Finance Act 1992).

Unless an exception applies, the Council will charge a premium on all properties that have been unoccupied and unfurnished for more than 1 year. The following Council Tax charges currently apply:

  • 200% – empty for 1 year or more
  • 300% – empty for 5 years or more
  • 400% – empty for 10 years or more

The time frame applies to the property, not the ownership; if you purchase a property that has been empty and do not intend to move in immediately you will be liable for the increased charge.

Second Homes

Second Homes are properties which are not considered to be anyone’s sole or main residence, but are furnished to a standard that it could reasonably be expected to be lived in. It would normally contain some, if not all, items from both of the following categories: furniture such as bed, chairs, table, wardrobe or sofa, and white goods such as fridge, freezer or cooker.

From 1st April 2025, unless you are within an exemption or exception period, the Council will charge a premium on all properties that are classed as second homes. Properties will be subject to a 200% charge.

Exemptions & Exceptions

The Council Tax system provides specific statutory exemptions for properties left empty for a specific purpose, for example when a person goes into care. Council Tax is not levied on such properties. Full details of all exemptions available can be found on our website https://www.molevalley.gov.uk/council-tax/empty-property-exemptions/

Under the Council Tax (Prescribed Classes of Dwellings)(England) Regulations 2003, the Government has prescribed two classes of dwelling which are exempt from the empty properties premium. These are:

  1. A dwelling which would otherwise be the sole or main residence of a member of the armed services, who is absent from the property as a result of such service and
  2. A dwelling, which forms part of a single property that is being treated by a resident of that property as part of the main dwelling (i.e. annexes).

Reviews will regularly be conducted on properties that are exempt, but it is the responsibility of the liable person to inform the Council of any changes.

All exceptions to the premiums are effective from the 1st of April 2025.

Properties undergoing probate

When a property becomes empty after the death of the occupier(s), the property is exempt from Council Tax as long as it remains unoccupied and is not sold, transferred or let.

Following a grant of probate, the property will be liable for the standard rate of council tax once the 6-month exemption has ended; but an additional premium cannot be levied for a 12-month period.

Properties for sale or let

A 12-month exception to both the empty and second home premium applies to properties that are actively marketed for sale or let. The exception will run from when the exception first applies until the end of the exception period or until the property is no longer actively marketed, sold or let (whichever is sooner).

Seasonally occupied properties

A pitch occupied by a caravan and a mooring occupied by a boat are an exception to the second homes premium. This does not affect empty properties as it is considered that caravans & boats cannot meet the criteria to be classed as such.

Empty properties undergoing structural repair

Properties undergoing major repairs or structural alterations will have a 12-month exception from the empty properties premium.

Holiday Lets and Self-Catering Properties

If the property is used commercially as a holiday let or self-catering property, your property will be rated as a self-catering property and valued for business rates if it’s both:

  • Available to let for short periods for at least 140 nights in total over the current and previous tax years.
  • Actually let for at least 70 nights in the last 12 months

If it does not fulfil these criteria, then it will be rated for Council Tax and from 1st April 2025 you will be charged 200% of standard liability.

Liability for more than one property

If you have liability for two properties for a period of up to 1 month, where you are moving from a rented property but still have a tenancy agreement for the property you have vacated, the Council will use its discretion to determine if the property is empty even if it was let to you as furnished.

Hardship

In exceptional circumstances where it is not possible to occupy a property and where paying an additional premium would cause extreme hardship to the liable person, the Council will consider an award of hardship under section 13a.

Section 13a of the Local Government Finance Act 1992 (as amended by the Local Government Finance Act 2012), provides the Council with discretionary powers to enable it to reduce a person’s Council Tax liability.

The provision allows the Council the discretion to aid taxpayers where either the existing legislation does not provide a discount, exemption or reduction or in such circumstances where the Council feels that the level of discount, exemption or reduction is insufficient.

The policy for Council Tax Exceptional Hardship can be found on our website at:

https://www.molevalley.gov.uk/discretionary-hardship-council-tax-reduction-scheme/

Support to bring Empty or Second Homes back into use

We understand that owning an empty property can be expensive and we want to assist owners to bring these properties back into use.  For advice and assistance we encourage you to visit our website www.molevalley.gov.uk/housing/empty-homes or email our Housing Team on housing@molevalley.gov.uk. Your collaboration plays a vital role in helping us to create a thriving and sustainable community.

Disputes

If you believe your Council Tax bill is wrong, you can appeal it. You cannot make an appeal if you think your Council Tax bill is too expensive.

You should continue to pay your Council Tax as billed even if you have an outstanding appeal.

If you wish to make an appeal regarding your bill because you think it’s wrong, you must:

  • Write to the Council, explaining why you believe the bill is wrong
  • Continue to pay instalments as per the most recent bill whilst your appeal is reviewed

There is no time limit in which to make an appeal, unless you are making an appeal against the band of your property.

The Council has 2 months in which to respond to your appeal.

If the Council does not respond within 2 months, or if you disagree with their decision, you can appeal to the Valuation Tribunal.

You must appeal within:

  • 2 months of the council telling you its decision; or
  • 4 months of you first writing to the council (if you have not had a response)

 

Latest Update

Last updated: April 2025

Approval of changes: Revenues Manager
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