Help available to property owners
5% VAT for long-term empty home renovations
If a residential property has been empty for 2 years or more, the owner may be entitled to claim a reduced VAT rate of 5% on works of renovation or alteration. Further information is available from the HMRC. If you wish to claim this reduced rate, you will need documented proof of the period of time the property has been empty. Contact us if you believe the property has been empty for 2 years, we can check our records and provide a letter confirming this.
Empty property loans
If your empty property needs renovation, you could be eligible for a low-cost loan. Loans for up to £25,000 are available through the Councils partner; Lendology Community Interest Company (CIC).
Lendology CIC’s team of advisers will guide you through the process of applying for an empty home improvement loan, assess your eligibility, explain the terms and conditions, confirm how much you could borrow and the loan best suited to your circumstances. Contact Lendology CIC for an informal chat about the repairs or improvements required to your empty property and how to apply.
Read case studies about how we work with Lendology CIC.
The condition of an empty property can deteriorate rapidly, costing more to insure and eventually repair, especially if it’s subject to vandalism. An empty home is also a wasted asset that could be providing a home or an income via rent. It has been estimated that keeping a property empty could cost the owner as much as £12,000 a year.
Charges and lost income from a property vacant for over 2 years may include:
- £3,648 for Council Tax:
- in 2022/23 Council Tax on a Band C empty property is estimated to be £1,824
- an additional 100% premium for long-term vacancy and 200% for property empty for over 5 years
- £6,582 lost rent based on Local Housing Allowance rates for a 3-bedroom property
- £1,000 for council-ordered work like securing the property and refuse removal
- £500 insurance premium per year. Properties left empty for over 30 days pose higher risks, leading to increased insurance
- £270 utility standing charges per year, even with no usage
These expenses can total around £12,000 per year for property owners.
From 1 April 2024, if a property is left empty for more than one year, the owner will be charged a premium rate of Council Tax at 200%. As an illustration the owner of an empty property in ‘Band D’ would see their Council Tax Bill rise from just over £2,000 to just over £4,000.
Properties left empty for 5 years or more will be charged at 300% (for an average Band D property a bill of £6,000). Properties left empty for 10 years or more will be charged at 400% (for an average Band D property £8,000).
These provisions are designed to encourage property owners not to leave properties empty.
We have a huge shortage of affordable housing in Dorset and a long waiting list of people in housing need. We may offer to buy your empty home from you and renovate it to rent to a local family. We can help you renovate your empty home. We can then lease it from you. You will receive a guaranteed rent every month and we get a home to rent out to a local person or family. Contact the Housing Standards team for more information.
Key4Me scheme
The Tenancy Sustainment team, in partnership with Dorset Council, offers the Key4Me scheme. This helps landlords rent their properties to applicants seeking long-term accommodation. The scheme includes a revised financial offer to landlords.
The team provides a free tenant matching service. Both tenants and landlords will receive support throughout the tenancy.
There are financial incentives available and no fees.
The scheme includes:
- cash incentives (dependent on the size of the property)
- support during the tenancy, should there be any tenancy issues arising
- pet bonds
- arrears bonds
- rent in advance/deposit
- a dedicated support team, available for both the tenant and the landlord
To take part or for more information, please email landlords@dorsetcouncil.gov.uk.
Second homes are charged a premium rate of Council Tax at 100% (or double council tax).
If you have a second home that you use for parts of the year, for holidays, work or seasonal stays, then your property is not likely to be an ‘empty home’.
We may classify a second home as empty if it has been unoccupied for a long time, even if it is registered as a ‘second home’ for Council Tax purposes. We deal with many cases of abandoned ‘second homes’ for which enforcement action is appropriate due to the affect they have on the local area.
Rent your second home with Key4Me scheme
If you no longer use your second home, why not rent it out via the Key4Me scheme.
You:
- will earn a rental income
- will pay no council tax
- may receive our incentive payment of up to £4,250
This is a common situation. We recommend you obtain competent legal advice, as the first step will be to make sure you have the legal right to deal with the ‘estate’. This is called applying for probate.
If you are currently experiencing difficulty dealing with an estate, would like further advice or have any questions relating to probate issues, then please contact us.
We work with a specialist panel of probate solicitors whom we can put you in contact with for any legal issues surrounding the estate.
Where offers of help and assistance have failed to bring an empty property back into use, or we cannot trace the owners, then the council has a range of discretionary enforcement powers. These powers tend to be used as a last resort where an empty property is causing a nuisance or other environmental issues within the local community.
This enforcement action can range from Compulsory Purchase powers to in certain circumstances legally ‘forcing’ the sale of the property. We may also effectively take over the management of the property under the Housing Act 2004 using an Empty Dwelling Management Order. Further information can be found in our enforcement policy.
Contact the Housing Standards Team for an informal chat about what you can do to bring the property back into use and how we can help.
Contact us
If you own an empty home and want further advice about Council Tax, VAT or an Empty Property Loan then contact us.