Do I Have to Pay Council Tax on Empty Property as a Surrey Landlord?

As a landlord, you will generally have to pay the council tax bill on an empty property – and the rate you pay could increase the longer it stays empty.  

If your rental property in Thames Ditton, Cobham or Esher is vacant, you may need to cover the council tax for a short time. Landlords can often find new tenants fairly quickly. But sometimes it takes longer, or you have other plans for the property, meaning you may attract a premium. The rules were tightened from April 2024, however, there are exemptions available. 

Since the empty homes premium rules changes in April 2024, followed by second homes premium changes in April 2025, it’s worth making sure you’re up-to-date.  

In this article, we review the current rules on council tax and empty properties for landlords in Surrey. 

Who is liable for council tax? 

If the property is empty, the owner is liable for council tax. This includes landlords with a vacant rental property, but that there are a few variables in determining your bill. 

Do you have to pay council tax on empty rental property in Surrey? 

Landlords in Surrey usually pay council tax on empty properties, and if the property is empty for an extended time, you will pay council tax at a higher rate. This is called the empty property premium. 

However, local authorities can choose how to apply council tax rules for empty properties. Elmbridge Borough Council does not offer a council tax discount for empty properties, except in limited circumstances. Instead, you may pay a higher rate of council tax if your rental property is empty for an extended period.  

What qualifies as an ‘empty’ property? 

An empty property in terms of council tax often refers to a home that is vacant and substantially unfurnished – though new rules have been brought in to cover furnished second homes.  

Long term empty properties are those that remain empty for a year or more. The property’s status only resets once it’s been occupied or substantially furnished for a continuous period of time. 

What is a council tax ‘empty property premium’? 

The council tax empty property premium is a higher rate of council tax applied to ‘unoccupied and substantially unfurnished’ properties that are vacant for more than a year. Empty property premium rates in Elmbridge are currently: 

Time Unoccupied	Empty Property Premium
Up to 1 year	Standard council tax rates apply
1-5 years	100% premium
5-10 years	200% premium
10 years or more	300% premium

As of 1st April 2025, local authorities including Elmbridge can also charge a ‘second homes premium’ of up to 100% on furnished second properties that are left empty. This is part of the Levelling Up and Regeneration Act 2023 – full details on are given by the House of Commons Library. While Elmbridge applies the maximum permitted rates as standard, other local councils may not – if in doubt, check. 

What resets the empty property premium clock? 

Under Elmbridge Borough Council rules, a property must be occupied or substantially furnished for a continuous period of at least six weeks to reset the clock.  

This reset period can stop the property from qualifying as ‘empty’ for premium purposes, however long it was unoccupied previously. 

Council tax exemptions for empty properties 

The rules on council tax exemptions differ for unfurnished properties and furnished second properties. 

1. Empty homes 

Empty properties are generally exempt from council tax if the property is: 

• Awaiting probate after an owner dies (typically for up to 12 months after probate or letters of administration are granted) 
• The home of a resident who has moved into hospital or a care home 
• The home of someone who is in prison 
• Derelict or not legally habitable 
• Empty awaiting demolition after compulsory purchase 

2. Unfurnished properties 

Unfurnished properties can qualify for an exemption from the council tax empty property premium when homes are ‘undergoing or awaiting major repairs for up to 12 months.’ 

Councils can ask for evidence to prove what the works are and whether they are under way, such as building control approval or contractor invoices.  

Take note though – this exemption only applies to the empty property premium, and not the standard council tax itself.  

3. Long term empty and second properties 

Elmbridge Council may waive the premium for empty properties that are: 

• Actively marketed for sale for up to 12 months 
• Actively marketed to tenants for up to 12 months 
• Part of an estate and you recently received a grant of probate or letters of administration 
• An annexe forming part of (or being treated as part of) a main residence 
• Unoccupied dwellings which fell under exempt Class F, and where probate was granted for up to 12 months 
• Used by a member of the Armed Forces living in supplied accommodation 
• Occupied caravan pitches and boat moorings 

These empty property premium exceptions can be time-limited and are usually discretionary, and you may need to provide evidence if the council requests it. For example, an estate agent marketing confirmation to prove your property is listed for sale.  

4. Furnished additional properties 

Furnished properties that are not a sole or main residence in Surrey’s Elmbridge that can be exempted from the second home premium include: 

• Caravan pitches and boat moorings 
• Seasonal homes 
• Job-related empty properties where the employer supplies accommodation elsewhere by necessity 
• A furnished rental property (for one month only) 

What about major renovations and derelict property? 

In Elmbridge, you may pay council tax at the standard rate if your empty property is unfurnished and undergoing major repair works or being structurally altered. For example, while undergoing major underpinning for subsidence or foundation repairs, structural repairs to the roof, or removal of supporting walls. 

However, if your property is derelict, you can apply for removal from the council tax list by contacting the Valuation Office Agency (VOA) to reassess the property’s current open market value. Landlords applying to have a derelict property removed from the council tax list should expect to provide the VOA with evidence including: 

1. The dates it was last inhabited, and the date it became uninhabitable. 
2. Interior and exterior photos of the entire property, with details of the issues making the property uninhabitable. 
3. Information on works needed to make it habitable again, and the date that works commenced. 
4. Structural reports or surveys and the relevant planning application. 

Explore our other guides for landlords covering topics such as statutory periodic tenancies, or whether to let your property furnished or unfurnished. 

How can you avoid paying council tax on an empty property? 

You can avoid paying unnecessarily by making sure you are aware of exemptions and discounts available, or by bringing a letting agent on board to help you rent it out. Check whether any exemptions apply, and speak to the local council if you suspect you may be eligible for an exemption.  

You can also avoid attracting an empty property premium by keeping the six-week reset rule in mind if you’re planning any works, or by finding tenants for your property.  

Our guide explores the issue of whether it’s better to let furnished or unfurnished in further detail. 

Does landlord insurance cover an empty rental property? 

Standard landlord insurance policies usually restrict, or exclude, cover if the property is empty beyond a certain time period – often 30-60 days. If you anticipate a longer void period, notify your insurer and/or arrange unoccupied property cover. Find out more about how to rent out your home, covering insurance, tax and more.  

Need reliable tenants for your rental property? 

Council tax rules on empty properties may have tightened in recent years, but landlords can save money by understanding the exemptions and all-important timings. If you opt to let it out, Davies Property Partners can assist in finding reliable tenants for your vacant property. 

If you have any questions about your rental property in Claygate, Hinchley Wood, or Cobham areas, Davies Property Partners can help. Contact us today to discuss your requirements.