Council tax changes to impact on landlords

The changes to Council Tax on empty property come into play this week.

So gone are the days when landlords got the automatic exemptions and discounts on their vacant rental properties between lets.

Also the exemption of properties undergoing development work is to be lost, with many councils deciding to offer no deduction of refurbishment properties.
To clarify the  changes:

    1.    Exemption class C (properties that are empty and unfurnished for up to six months) has been abolished and each council can decide whether to award a local discount in its place
    2.    Councils can decide to charge an additional premium of up to 50% on homes that have been empty and unfurnished for two years or more
    3.    Exemption class A (properties requiring or undergoing major repairs for up to 12 months) has been abolished and each council can decide whether to award a local discount in its place
    4.    The minimum discount that councils can give for furnished homes that are no one’s ‘sole or main residence’ – i.e. second homes and unoccupied furnished lets – has been reduced from 10% to 0%.

Each council is taking an independent approach, with some offering shorter exemption periods, or percentage reductions, whilst others are handing no favours and are charging full rate from day one.

Speak to your local council to find out what their decisions are and don't be surprised if it doesn't change year by year.

The best advice for landlords is keep your tenants happy and avoid rental voids.

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