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 over time.

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 within a short time, however, sometimes it takes longer or you have other plans for the property, which may attract a premium. However, there are exemptions available.

In this article, we review the 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.

Empty properties & council tax in Surrey

Local authorities can choose how to apply council tax rules for empty properties. Elmbridge Borough Council does not offer a 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.

Do you pay council tax for an empty property?

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.

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:

• 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.

Council tax exemptions for empty properties

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

Empty homes

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

• Awaiting probate after an owner dies
• 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

Unfurnished properties

Unfurnished properties can qualify for an exemption from the council tax empty property premium when:

• Undergoing or awaiting major repairs for up to 12 months

Long term empty and second properties

Elmbridge Council may waive the premium for empty properties that:

• Actively marketed for sale for up to 12 months
• Actively marketed to tenants for up to 12 months
• A furnished tenancy empty for up to 1 month
• Part of an estate and you recently received a grant of probate or letters of administration
• Annexes of a main residence
• Used by a member of the Armed Forces living in supplied accommodation

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:

• Furnished tenancies for up to 1 month
• Caravan pitches and boat moorings
• Seasonal homes
• Job-related empty properties where the employer supplies accommodation elsewhere by necessity

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.

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. Speak to the local council if you suspect you may be eligible, to avoid missing out on an economy.

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.