Council proposing to strengthen tax measures on empty homes

A proposal to increase council tax premiums on properties left vacant for extended periods will be discussed at the upcoming council meeting on 11 March.

Under the current policy, homes left empty for over two years face double council tax. Under the proposed changes, a 100% premium will apply after just one year, effective from April 2025. The 200% premium after five years and 300% after ten years will remain unchanged.

This move follows new legislation and the latest Census data, which recorded 2,135 empty homes in Watford, representing 5.2% of the town’s housing stock. With demand for housing at an all-time high, the council is committed to tackling the issue of long-term vacant properties.

The measures aim to bring empty properties back into use, encouraging property owners to live in or sell their empty homes. This will help to add more homes into the local housing market and reduce the number of underused properties, ensuring that housing is available for residents who need them. It would also generate significant revenue with an estimated £332,000 of additional council tax for 2025/26.

The proposed changes also include the introduction of a 100% council tax premium on second homes, effective from April 2026. 

Elected Mayor of Watford, Peter Taylor said: "It is simply unacceptable for properties to sit empty for years, while local families struggle to find a home. By strengthening the rules on empty homes, we are encouraging property owners to bring them back into use.

“Nationally, empty homes contribute to the housing crisis, with organisations like Shelter calling for stronger measures to bring properties back into use. The government has now given councils greater powers to increase council tax on long-term vacant properties, which we are looking to do very soon.”

If approved, the changes would come into effect from April 2025 and 2026 respectively, giving homeowners time to act.