Empty Homes & Council Tax

What actually happens when you buy an empty home?

Investor Penalised for Renovating Vacant Property

An investor recently sourced a property off-market and purchased it at full market value, with the clear intention of renovating and quickly returning it to the rental market. Within just three months, the renovation was completed to a high standard, the property was marketed, and successfully tenanted—bringing a long-vacant home back into active use. However, during the renovation period, the investor received a council tax bill totaling £1,478.97 for the three months the property was empty. Upon contacting the local council to enquire about any potential discounts or relief for the period of renovation, they were informed that only properties undergoing structural work would qualify for a reduction. To the investor’s shock, the very next day after this enquiry, a court summons was issued—accompanied by additional fines—relating to the unpaid council tax. This action was taken without any further communication or opportunity for discussion. The investor has since approached us, understandably frustrated. They took on a property that had sat empty for a significant period and invested time and money to improve it and bring it back into the local housing supply. They feel strongly that the response from the council was not only unhelpful but also dismissive, with little understanding or appreciation for the value their investment brought to the community.

This situation raises an important question:

Should current council tax legislation be urgently reviewed to better support those actively working to improve housing stock?