Empty homes tax set to raise nearly £1 million

The extra council tax for empty homes in Oxford is expected to raise almost £1m in this financial year, new figures have revealed.

The city council introduced an empty homes council tax premium in April 2024 for homes that have been empty and unfurnished for more than a year.

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

The city council expects to raise £952,178.82 from the council tax premium in the 2025/26 financial year, according to a Freedom of Information request sent by the Local Democracy Reporting Service.

The FOI also revealed that the city council raised £647,216.24 from the premium in the 2024/25 financial year.

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

Homes that have been empty for more than five years will pay a 200 per cent premium while homes that have been empty for more than ten years will pay a 300 per cent premium.

Councillor Ed Turner, cabinet member for finance and deputy leader of the city council, said he welcomed the introduction of the charge.

He added: “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.

“Similarly, we were one of the first councils to call for and then implement the additional council tax on second homes.”

A property is considered empty for council tax purposes from the date it becomes unoccupied, and this does not change if there is a change of ownership or tenancy.

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

But so far 489 of those properties are exempt from paying the empty homes premium.

There are a number of reasons for the exemption being granted, such as when the property is actively being marketed for sale or rent, or if the residing owner has died, and they are valid within a 12 month time limit.

Mr Turner added: “I am not surprised there are quite a few properties exempt.

“It’s in the nature of things that 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.”

The city council does not get all of the council tax income which means a share of the added council tax raised will go towards the county council and the police.

When asked how the money would be spent, a spokesperson for the city council said: “Council tax forms part of the council’s overall income.

“Separate elements of the overall council tax income are not ringfenced for specific purposes.

“Council tax income is used to support the provision of the council’s services.”

The city council also introduced a council tax premium of 100 per cent on second homes in April 2025, which it expects to raise £1.8 million from in this financial year.

There are 1,100 registered second homes in Oxford.