Empty homes tax expected to raise almost £1m

Almost £1m of extra council tax is expected to be raised from a city's empty homes this financial year, new figures have revealed.

Oxford City Council introduced an empty homes council tax premium in April 2024 for properties that had been empty and unfurnished for more than a year.

It aims to bring homes back into use amid the growing demand for housing in the city.

The council expects to raise £952,179 from the council tax premium in the 2025/26 financial year, according to a Freedom of Information (FOI) request sent by the Local Democracy Reporting Service.

The council also raised £647,216 from the premium in the 2024/25 financial year.

Properties that have been empty for more than a year will pay a 100% premium on top of council tax.

Homes empty for more than five years will pay a 200% premium, and those empty for more than 10 years 300%.

Ed Turner, cabinet member for finance and deputy leader of the city council, said: "Given the scale of the housing shortage in Oxford, homes should not be sitting empty without reason, and this provides an incentive for owners of any such homes to get them occupied.

"The extra funding is also useful."

A property is considered empty for council tax purposes from the date it becomes unoccupied, regardless of whether there is a change of ownership or tenancy.

The FOI showed there were 608 registered empty homes with a number of them waiting for redevelopment.

However, 489 are exempt from paying the premium as they are actively being marketed for sale or rent, or because the residing owner has died, and are valid within a 12-month time limit.

Mr Turner said: "Many properties will fall into these categories, and in truth property in Oxford is such a valuable asset that most owners would not wish it to be empty."

When asked how the money would be spent, a spokesperson for the city council said it would support the provision of the authority's services.

A share will go towards Oxfordshire County Council and the police.

The city council also introduced a council tax premium of 100% on second homes in April, which it expects to raise £1.8m from this financial year.

There are 1,100 registered second homes in Oxford.

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