Following the Government's Levelling-up and Regeneration Act, which came into force on 26 October 2023, local councils can now charge higher council tax on properties that are defined as long term empty homes and properties that are only occupied occasionally (second homes). This is called the Long Term Empty Property Council Tax Premium and Second Home Council Tax Premium.

An additional charge is intended to encourage owners to bring them back into use and could boost the supply of properties available to rent in Milton Keynes, which supports local people.

We are considering two changes:

Proposal one: from 1 April 2024, to reduce the length of time a property can be unoccupied and unfurnished before being charged an additional 100% council tax premium (2x the current council tax amount) from the current two years to one year.

Proposal two: from 1 April 2025, to increase the council tax payable by 100% (2x the current council tax amount) on a second home property, where there is no resident, and which is substantially furnished.

The Government recognises that there may be circumstances where it might not be appropriate for council tax premiums to apply and will be providing a list of exceptions to the council tax premiums. It is expected, but not yet confirmed, that the following may be excluded from the Council Tax premium:

• Where probate has been awarded a 12-month exception from the premium at the end of the statutory 6-month exemption period.
• Where a property is being actively marketed for sale or to let a 6-month exception from the premium)
• Will not apply to annexes forming part of or being treated as part of the main dwelling.
• Will not apply to properties currently receiving a 50% job related second home discount.
• Will not apply to occupied caravan pitches and boat moorings.
• Will not apply to seasonal homes where year-round or permanent occupation is prohibited or has been specified for use as holiday accommodation.

Next Steps

We would welcome views from local people including property owners, people searching for a home, residents affected by empty homes and second homes, and the views of the wider housing sector.

You can respond by email to debra.collins@milton-keynes.gov.uk

or by post to: Debra Collins Revenues & Benefits, Civic, 1 Saxon Gate East, Milton Keynes, MK9 3EJ

Final proposals will be presented to Cabinet in December 2023.