Councils across England are tightening the screws on owners of empty homes as another wave of local authorities reduces the Empty Home Premium threshold from two years to one year from 1 April.
Under the new rules, properties left vacant for just 12 months will face council tax bills doubled to 200 percent of the standard rate. The policy aims to push owners into bringing empty stock back into use – or selling to those who will.
Over one million homes stand empty
According to the Empty Homes Network, one in every 25 homes in England is now empty – totalling more than one million properties. Previous research from specialist lender Together found that 52 percent of the public pass by a deserted building every week, with half calling for abandoned properties to be revived for housing, business or retail use.
Elliot Vure, sales director at Together, said the focus on new builds overlooks existing opportunities.
“While the nation often focuses on building new homes, a large and often overlooked percentage of homes in England are already empty,” Vure said.
Vure highlighted barriers facing those willing to tackle empty properties: “Traditional mortgage products often aren’t suitable for empty or dilapidated homes, especially where a property is deemed uninhabitable. That’s where specialist lending can play a vital role.”
This follows Residential Landlord’s coverage of the MFS bridging lender collapse earlier this year. Despite that disruption, demand for short-term finance to renovate empty properties remains strong.
Bridging loans up 95 percent since 2022
Together reports a 95 percent increase in bridging loans funded since 2022, with some used to bring empty or run-down homes back into use. The lender is calling for greater flexibility from the industry to support buyers willing to take on vacant stock.
“As an industry we should be encouraging and supporting borrowers who are willing to take on vacant or neglected homes,” Vure said. “That could mean greater flexibility on property conditions at purchase or exploring partnerships with local authorities where empty homes are a particular issue.”
For landlords considering bridging finance for acquisitions, empty homes often appear at auction requiring renovation – and short-term funding can enable quick completion before the council tax premium kicks in.
Opinion
The policy is a blunt instrument – some properties genuinely cannot be brought back into use quickly. But for landlords with renovation expertise and access to bridging finance, the resulting churn creates opportunity. Every vacant property that changes hands under council tax pressure is a potential addition to rental stock. The one-year threshold turns empty homes from a holding problem into a selling imperative.
