Council Tax premium for properties that are unoccupied and furnished

From 1 April 2025 there is a Council Tax premium for properties which are furnished and are not occupied as anyone's permanent residence. 

These properties are commonly used as "second homes", where the owner lives elsewhere and the property in the New Forest is occupied periodically at weekends and/or holidays.

However, we know this will not always be the case, and the property could be:

•  a property you rent for work purposes and you have a main home elsewhere
•  a property which has been inherited

The Council Tax premium will be an additional 100% charge, on top of the full Council Tax for the property, and will take effect from 1 April 2025.  

The decision to charge additional Council Tax in these circumstances is:

• to encourage owners of second homes to make their properties available to be used as a permanent residence to increase the housing supply for local households
• to raise additional revenue to support the vital services provided to our local communities

The additional Council Tax revenue will be roughly distributed as follows:

Exceptions to the Council Tax premium

There are some exceptions where the premium will not apply. This includes where:

• the property would be someone's sole or main residence if they were not living in job-related armed forces accommodation provided by the Ministry of Defence
• the property is an annex that forms part of, or is being treated as part of, the main property
• the property is a caravan pitch or boat mooring
• the property is provided by a person's employer for the purpose of performing their work, for example a headteacher of a boarding school who is required to live in school accommodation or a care worker who is required to live on site to carry out their role
• the property is a seasonal home, specified as holiday accommodation, where year-round occupation is prohibited

In addition, there are some circumstances where the exception will not apply for up to 12 months. This includes where:

• the property is being actively marketed for sale
• the property is being actively marketed for let
• probate has recently been granted

Properties actively being sold or let

The exception applies for up to 12 months from the date the property was first actively marketed for sale or for let.

If the property has been marketed for sale or for let for more than 12 months when the premium starts on 1 April 2025, the exception will not apply and the Council Tax premium will be charged from 1 April 2025.

There are several factors which we will consider when deciding whether a property is being actively marketed for sale or rent, including:

• whether the property is clearly advertised
• whether the property is being marketed at a fair market value
• whether the property has an energy performance certificate
• whether the owner is taking any other reasonable steps to market the property for sale or let

To apply for an exception to the premium you will need to e-mail us at counciltax@nfdc.gov.uk and:

• confirm the date the property was first advertised for sale or rent
• confirm the name/address of the agent and the link to the online listing, for example Rightmove.  If the property is not advertised online, please provide the link from the selling agent's website.
• confirm that the property is being marketed at a fair market value, for example, an email/letter from your selling/letting agent or a reference to similar properties for sale/rent in your local area
• provide a copy of the energy performance certificate if this is not otherwise available from the online listing
• provide details of any other steps you have taken / are taking to sell or let the property

Properties which are subject to probate

The exception applies for up to 12 months from the date of probate, where the property remains part of the estate of the person who has died, or until the property is sold or transferred to a beneficiary.

If probate was granted more than 12 months prior to 1 April 2025, the exception will not apply and the Council Tax premium will be charged from 1 April 2025.

Please be advised that aside from the specific circumstances explained on this page, we do not have the discretion to reduce the premium, to delay the start date of the premium, extend the 12 month exception period, or to waive the premium altogether.