Council tax on rented and empty homes: UK rules
Last updated 27 Oct 2026
In England, Scotland and Wales the tenant who lives in a rented home pays the council tax, but the landlord pays for an HMO and for a home nobody lives in; Northern Ireland has domestic rates instead, and the landlord pays them on most lets. An empty home can also attract a premium on top of the normal bill, set by the council within limits that differ by nation.
| Nation | Who pays on a let | Who pays when empty | Empty-home premium | Second-home premium |
|---|---|---|---|---|
| England | The resident tenant; the owner for an HMO | The owner | Up to 100% after 1 year, 200% after 5 years, 300% after 10 years | Up to 100% |
| Scotland | The resident tenant; the owner for a council tax HMO | The owner; most empty unfurnished homes are exempt for 6 months | Set by the council after 12 months empty; the double-rate cap ended on 1 April 2026 | Set by the council |
| Wales | The resident contract-holder; the owner for an HMO | The owner | Up to 300% after 1 year | Up to 300% |
| Northern Ireland | Domestic rates: the landlord if the capital value is £150,000 or less, and for an HMO | The owner, at the same rate as an occupied home | None | None |
England: who pays council tax on a rented home
The resident tenant pays. Section 6 of the Local Government Finance Act 1992 sets a hierarchy of residents who are liable, and the owner comes last, liable only when nobody is resident.
So between tenancies, the landlord pays. GOV.UK's second homes and empty properties page says that for an empty home the council "can decide to give you a discount"; there is no national discount.
The owner also pays for an HMO. Class C in regulation 2 of the Council Tax (Liability for Owners) Regulations 1992 covers a home lived in by people who are not one household, or where each occupier rents only part of it. The government's plain English guide to council tax gives "houses in multiple occupation (where rooms are let individually)" as an example.
A home let only to full-time students is exempt: GOV.UK's student discounts page says "Households where everyone's a full-time student do not have to pay Council Tax."
England: empty-home and second-home premiums
A council can charge a premium on a home that has been unoccupied and substantially unfurnished for at least 1 year, under section 11B of the 1992 Act. The maximum is 100% if empty under 5 years, 200% for 5 to 10 years, and 300% for 10 years or more.
The 1-year period replaced 2 years under the Levelling-up and Regeneration Act 2023, and councils could use it from April 2024. Section 11C lets a council add up to 100% on a furnished home with no resident, from April 2025, if it decided at least a year ahead.
From 1 April 2025, some homes are excepted from the premiums. GOV.UK's guidance on the premiums lists them. For landlords the main one is Class H: a home being marketed for let, for up to 12 months.
Regulation 12 of SI 2003/3011 defines Class H as a home "being marketed for let under a tenancy on terms and conditions, including the proposed rent". The guidance says the same owner can claim it again only after the home has been let for at least 6 months in a row. Homes waiting for probate (Class I) and needing major repairs (Class M, empty homes only) are excepted for up to 12 months too.
Scotland
The resident tenant pays, under section 75 of the 1992 Act, which applies in Scotland. In shared homes, mygov.scot's discounts and exemptions page says the owner is responsible for council tax and tenants "do not need to pay", even if their agreement says otherwise. A home can be a council tax HMO even if it does not need an HMO licence.
mygov.scot's empty and second homes page (updated 1 April 2026) says "Most empty and unfurnished homes are exempt from Council Tax for 6 months after someone last lived there."
After more than 12 months empty, the council can charge a premium or give a discount of up to 50%. The page says "Until 1 April 2026, premiums were limited to double the usual Council Tax rate", and that limit no longer applies. Regulation 4A of the 2013 regulations, inserted from 1 April 2026, lets a council choose a percentage "other than 100%".
A home actively marketed for let or sale escapes the premium while it has been empty for less than two years, under Schedule 2.
Wales
The resident contract-holder pays, under the same section 6 hierarchy; the owner pays for an HMO under the 1992 owners' regulations, which cover England and Wales, and when the home is empty.
Welsh councils can charge up to 300% on a long-term empty home under section 12A of the 1992 Act, after 1 year unoccupied and substantially unfurnished. Section 12B allows up to 300% on a second home, decided at least a year ahead.
The Welsh Government's empty and second homes guidance says the maximum rose to 300% from 1 April 2023. Its Class 2 exception covers a home marketed for let, for up to 1 year. To use it again, the home must have been let on a tenancy of 6 months or more.
Northern Ireland: domestic rates
Northern Ireland charges domestic rates, not council tax. nidirect's rates on rental properties page says the landlord pays if "a domestic property's capital value is £150,000 or less". Above that, "the tenant is responsible for rates unless their landlord has agreed to pay the rates".
The landlord also pays for an HMO, which nidirect's rates page defines as "a property rented to three or more tenants from two or more families". That rates definition is wider than the one for HMO licensing, which needs more than two households. A landlord who pays the rates on all their lets in full by the due date can get the 10% Article 21 allowance.
Empty homes are rated too. nidirect's rating of empty homes page says "The owner is responsible for paying rates on an empty property" and rates "are the same for empty or lived in domestic properties". There is no premium.
Frequently asked questions
Does the tenant or the landlord pay council tax? In England, Scotland and Wales the tenant who lives in the home pays. The landlord pays when nobody lives there or the home is an HMO.
Who pays council tax in a house share? The owner pays where the occupiers are not one household or each rents only part of the home. In Scotland mygov.scot says tenants of a council tax HMO do not need to pay, whatever their agreement says.
Who pays council tax between tenancies? The landlord, as owner, because nobody is resident. In England any discount for an empty home is up to the council.
Do I pay the empty homes premium while I look for a tenant? In England, not for up to 12 months while the home is marketed for let. In Wales the exception also lasts up to 1 year, and in Scotland it lasts while the home has been empty under two years.
How much is the empty homes premium in England? Up to 100% after 1 year empty, 200% after 5 years and 300% after 10 years, so a bill of up to four times the normal amount.
Do landlords pay rates on an empty house in Northern Ireland? Yes. nidirect says the owner pays rates on an empty property at the same rate as an occupied one.
Keeping track of a let
Letbook is a compliance tracker for landlords in all four UK nations. It keeps each property's certificates, deposit and tenancy dates. It does not calculate or pay council tax or rates, so check your bill with the council or Land & Property Services. Sign up free.
Related guides: allowable expenses for landlords, HMO and selective licensing in England and landlord registration by nation.
Sources
- Local Government Finance Act 1992, sections 6, 11B, 11C, 12A, 12B and 75, legislation.gov.uk
- Council Tax (Liability for Owners) Regulations 1992, regulation 2, legislation.gov.uk
- Council Tax (Administration and Enforcement) Regulations 2003, regulation 12, legislation.gov.uk
- Council tax premiums on long-term empty homes and second homes: guidance, GOV.UK
- Second homes and empty properties, GOV.UK
- Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013, regulation 4A and Schedule 2, legislation.gov.uk
- Empty and second homes, mygov.scot
- Council tax on empty and second homes, Welsh Government
- Rates on rental properties, nidirect
- Rating of empty homes, nidirect
Facts checked on 27 October 2026. For England this page relies on the 1-year empty period in force from April 2024, the second homes premium from April 2025 and the exceptions from 1 April 2025; for Scotland, the regulations in force from 1 April 2026. Councils set their own premiums, so check your council's current rates. This page is general information, not legal advice.