Do I Have to Pay Council Tax on Empty Property in Central London?

It’s likely that you’ll have to pay council tax on your empty central London property, and your council tax bill could increase if it’s empty for an extended period.

As reported in BBC, Westminster City Council estimates that 11,000 or more homes in the borough have been vacant for several years. To encourage property owners to keep homes in use, the council now charges now an empty property premium after a certain amount of time has passed.

However, you can avoid paying council tax by claiming an exemption if you qualify. That’s why it’s important to find out how the council tax empty property rules apply to your rental apartment in Pimlico or Paddington.

Read on, as we explain when landlords have to pay council tax on an empty property in central London.

Do you pay council tax for an empty property in central London?

The property owner is responsible for paying tax on empty homes, including rental properties, and you should be aware that the amount of council tax you pay can change the longer a house stays empty – this is important because it is bound to effect your overall rental yield on a property.

As of 1 April 2013, local councils in England can apply a council tax premium for long-term empty properties. Initially set at 0%-100%, rules on council tax changed on 1 April 2025, and the council tax premium has increased. Full details are available on gov.uk.

What do councils consider an empty property?

Council tax rules are particularly concerned with properties that are empty for a year or more. Westminster City Council considers a house or flat to be an empty property if there is no legitimate reason why they’re not occupied. For example:

• Unoccupied investment properties
• Empty flats linked to shops
• Derelict homes
• Empty second homes

Are there council tax exemptions for empty properties?

You can claim a council tax exemption if the situation is complex – for example, if the owner has recently died or the property is not habitable. Common reasons include:

• the property is legally unfit to live in
• probate or letters of administration are ongoing
• the main or sole residence of someone who is in hospital or a care home
• temporarily working from another location
• the property is undergoing major repair works
• you are a member of the armed forces required to move into armed forces accommodation

In some situations, you may not meet the council tax exemption rules but could qualify for an empty homes discount of 50%. If you think you may be eligible, contact Westminster City Council or your local council to apply.

What is an empty property premium?

An additional empty property premium can be added to your tax bill if your property is ‘long-term empty’, and it rises steeply the longer it remains unoccupied. If your Westminster property has been unoccupied for over 12 months to 5 years, you will have to pay a council tax premium of 100% on top of your property’s normal council tax. The empty property premium rises to 200% after 5 years, and 300% after 10 years.

Rules concerning major renovations & derelict property

Derelict properties that require major structural works are considered derelict, as are homes have suffered weather damage or vandalism. To avoid paying council tax while your property is unfit to live in, you need to challenge your tax band with the Valuation Office Agency.

You can also ask for your property to be removed from the council tax list while it’s undergoing major renovations. You must notify the council initially, and again when the works are complete to start paying full council tax rates once more.

Note that if you are carrying out renovations to bring a vacant property back to a habitable condition after more than 2 years, you could also benefit from reduced VAT rates of 5%. If the property has been empty for over 10 years and you’re planning to move into it, your VAT rate could fall to 0%.

Can you avoid paying council tax on empty property?

You can certainly avoid paying unnecessarily where you qualify for a discount or exemption, as outlined. However, you must pay council tax that is owed, and any claims you make must be legitimate. Westminster Council has reported an increase in false claims to evade council tax premiums empty properties, as reported in The Telegraph, and are taking measures to detect inconsistencies.

Understand empty property council tax?

If you are dealing with an empty property in Marylebone, Victoria or Soho, the costs can be substantial – whether it is from damp due to a poor EPC, or security measures you have had to install.

But despite the costs, buy to let is still worth it if you have an effective strategy to deal with your empty rental property, starting with a good managing agent. We can offer guidance on the next steps, whether you are planning to rent or sell. Contact us today.