To curb vacant propertiesand stimulate the rental market, the UK government is introducing new measures effective April 2025. In certain areas, properties deemed as “second homes” will be subject to a Council Tax premium of up to 100%. In other words, the total tax bill could double.
For example: if a property’s annual Council Tax is £2,000, from the 2025/26 tax year, it could rise to £4,000 if classified as a second home.
A property may be classed as a “second home” if:
* It is furnished but not permanently occupied;
* It is only used occasionally and not as someone’s sole or main residence;
* It serves as a holiday home, investment property, or temporary accommodation.
For long-term vacant properties (largely unfurnished), the premium increases over time:
* Vacant 1–5 years: up to 100%;
* Vacant 5–10 years: up to 200%;
* Vacant 10+ years: up to 300%.
Exemptions include:
* Properties linked to armed forces accommodation;
* Annexes forming part of a main residence;
* Homes actively marketed for sale or rent (12-month limit);
* Certain probate properties (12 months from grant of probate).
For second homes only: accommodation provided by an employer for work purposes.
Tip: Some properties may qualify for exemptions—landlords are advised to check with the local Council.
With escalating Council Tax premiums, many landlords may feel the financial burden of keeping properties vacant. Renting out the property is a smart way to avoid these extra costs.
At Letukhome, we offer a one-stop rental solution: from property listing and tenant search to lease paperwork and ongoing maintenance. We handle everything, ensuring your property generates steady rental income while protecting you from vacant-home tax surcharges.
If you own a second home or investment property, contact Letukhome today and let us take the stress out of your rental journey.
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