Council tax on an empty house while you're selling

If you've moved out and your old home is sitting empty while it sells, you're still paying council tax on it. Many councils now charge a premium on empty and second homes, which can double the bill or more. The good news: a home that's genuinely for sale can be protected from the premium for up to 12 months. Here's how it works.

Do you pay council tax on an empty house for sale?

Yes, usually. An empty home isn't automatically exempt. The question is whether you pay the normal bill, or the normal bill plus a premium.

What are the empty home and second home premiums?

Councils can charge extra on homes nobody lives in. The House of Commons Library explains that the empty homes premium can only be charged once a property has been empty for 12 months. For second homes, which are furnished but not anyone's main home, there's no grace period.

Long-term empty homes can pay much more. Sutton Council, for example, charges 300% of the full council tax bill on homes empty for five years or more.

Is there an exception for homes that are for sale?

Yes. Councils must give an exception from the premium for homes actively marketed for sale. Colchester City Council lists the exception as Class G – Dwellings being actively marketed for sale (12 months limit).

Sutton Council explains that the exception applies to properties that are for sale or where the sale has been agreed but not completed, and ends after 12 months, when the home is sold, or when it's no longer actively marketed.

What evidence will the council ask for?

Councils want proof that the home is genuinely for sale at a fair price. Sutton Council asks for proof from the estate agent of the date the home was first marketed, and details of sale prices for similar homes, to show the asking price is fair. An overpriced home that isn't really trying to sell may not qualify.

Can you use the exception more than once?

Only in limited cases. The House of Commons Library notes the for-sale exception cannot apply to a property for a second time until it has been sold, or let for at least six months.

What if the house doesn't sell within 12 months?

Once the 12 months are up, the premium can apply, even though the house is still for sale. For a home that has been empty for over a year, or is furnished as a second home, that can mean double council tax while you keep waiting for a buyer.

How can you cut the cost of an empty house while it sells?

• Apply for the for-sale exception as soon as the house is on the market.
• Price it realistically, both to sell faster and to satisfy the council.
• Tell the council the date you moved out and the date it went on the market.
• Consider short stays while it sells. Once guests stay regularly, the home may be treated differently for council tax or business rates. Take advice on your own position.

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This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.