WHAT TO DO WITH AN EMPTY HOUSE: VACANT PROPERTY COSTS
Tom Condon
October 23rd, 2023
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Are you faced with managing an empty house and concerned about the costs associated with maintaining a vacant property? Well, you are not alone — most investors face periods of voids between tenants in which their properties lie unoccupied.
When faced with a property which is set to be empty for an extended period of time; there are several council tax bill implications and additional charges to explore while ensuring your property is secure for mortgage and home insurance providers.
Whether you’re a landlord looking to safeguard your assets on a temporary or emergency basis, or a homeowner seeking to protect your property and privacy we will provide you with how you can protect your vacant property.
A vacant property is one that is entirely empty; there are no personal items, belongings, furniture or appliances left within the property. Empty properties are legally considered vacant when the property has been left empty for more than 30 days. A vacant property can be either residential or commercial.
Vacant houses tend to have some overlap with unoccupied properties, except the fact that an unoccupied property may have belongings still within the property. Empty houses often have no interest from market buyers and are usually only sold off-market – through a sourcing company like us!
Why do properties become vacant?
A vacant property may become empty if:
- It has been classed as abandoned or is considered derelict.
- The owner has moved into a second home but hasn’t sold the original property.
- The owner of the property is awaiting renovations to begin.
- The property is currently in a void period as the former tenants have left.
How long can I leave my house unoccupied?
Technically, you could leave your property unoccupied for however long you want or have too. But, most home insurance providers will only cover an empty property for 30 to 60 consecutive days.
You may also face pressure from your mortgage lender who may hold eligibility criteria for maintaining your vacant property.
When properties are left vacant for extended periods, they may fall victim to several problems due to a lack of regular maintenance like:
- The building interior and exterior structure may slowly deteriorate.
- Windows become damaged.
- Gutters become blocked
- Paint may peel.
- Gardens become overgrown.
- Dust will accumulate.
- Mould will grow & dampness will increase.
Why do vacant houses deteriorate?
A vacant house in the UK will face deterioration without property maintenance. It doesn’t matter what season you leave a property unoccupied for, if it is left for months on end without a good clean or inspection then it will begin to face neglect.
The small issues like too many leaves in the garden, or windows that don’t shut properly may snowball into much larger issues like gutters becoming blocked and wind flowing through the property.
Should I turn off the boiler in an empty house?
It depends on the season or outside temperature; if it is summer then it may be worth just turning the heating on low for the first couple of hours in the morning to ensure it doesn’t get too cold.
To avoid extreme deterioration of a vacant house in the winter months, it may be wise to keep the heating on all day and night but keep the thermostat at a very low temperature – usually around 12 degrees. This will prevent your property and pipes from freezing over, and decrease the risk of burst pipes.
Alternatively, you could drain all your plumbing and heating systems within the empty property. This will greatly reduce the risk of a burst pipe, and is especially necessary if you think the vacant house will remain unoccupied for months at a time.
How do you protect a vacant property?
Vacant houses are more susceptible to vandalism, theft and squatting as many empty properties are quite obviously unoccupied. Securing vacant property can be relatively simple, you should try and imitate that someone is still living within the property.
This can be done by:
- Keeping security systems activated & installing CCTV.
- Keeping the vacant property maintained inside and outside, making sure that the garden and driveway are well kept if needed.
- If there are any appliances within the property (ovens, washing machines, etc) ensure that they are switched off to avoid fires.
- Use smart home devices to create the illusion that the property is in use – This could be done using smart lights or TV’s on a timer, or a smart doorbell used to speak to anyone approaching the front door.
- Utilise specialist vacant property home insurance to get the best possible cover for your situation.
You are exempt from paying business rates on vacant residential property in the UK for an initial three-month period. However, if you’re in the process of selling a house during probate, this exemption extends to six months. For vacant industrial properties, the rate-free period is also six months, but after this grace period, full business rates are applicable.
In order to initiate a new rate-free period, the empty property must be occupied for a continuous six-week period before being left empty again. Any change in ownership, leaseholder, or tenant nullifies the possibility of another rate-free period.
Are there any empty property rate exemptions?
Exemptions for unoccupied properties from business rates include:
- Properties with a rateable value before £2,900 from April 1 2017.
- Properties where occupation is legally prohibited.
- Properties subject to action from either the Crown or a council for purchase or occupation.
- Listed builds and ancient monuments.
- Properties to be used entirely or mainly for charitable purchases by a charitable ratepayer.
- Properties designated for complete or mainly sporting activities by a Community Amateur Sports Club (CASC) ratepayer.
- Properties fully exempt from business rates.
- Properties where the ratepayer’s only association is as the personal representative or executor of a deceased individual.
Unoccupied properties can also qualify for exemption if they fall under specific insolvency or debt related scenarios, such as:
- A bankruptcy order in relation to the ratepayer or their estate.
- A company in administration, undergoing liquidation, or facing a winding-up order.
- A ratepayer serving as a trustee under a deed of arrangement.
It depends on how long the property has been empty for. An empty property which has been empty for under 2 years will be charged the same amount of council tax as an occupied property. If a property has been empty after 2 years, but under 5 years, then it is charged twice as much council tax as an occupied property.
Properties which have been empty for more than five years are charged three times the amount of council tax and an occupied property.
The council tax levy is as follows:
- Under 2 years: the same as occupied properties.
- Over 2 years, below 5 years: 100% levy.
- Over 5 years: 200% levy.
What vacant property council tax regulations are there?
If you own an unoccupied and unfurnished property then you may be able to receive a full exemption from council tax for one month, but this can only be used once and is regardless of ownership.
If the property is deemed uninhabitable, and is unoccupied and unfurnished due to its condition then the property will qualify for the same exemption.
Are there any council tax exemptions for empty properties?
Some empty or vacant properties may be exempt from council tax beyond the one month, like:
- If the empty house is owned by a charitable organisation – exempt for 6 months.
- The vacant property has been left by someone who is in prison.
- The property owner is in personal care in a hospital or home elsewhere.
- The vacant property has been left empty by students.
- The empty property is awaiting probate or letters of administration to be granted – exempt for 6 months.
- The property has been repossessed by the mortgage provider.
- The building is the responsibility of a bankrupt’s trustee.
- The home is empty because the occupation is forbidden by law.
- The vacant property is waiting to be occupied by a minister of religion.
- The empty home or dwellings annexed to another dwelling that cannot be let separately.
Do you pay utility bills on empty property?
If you are following the general advice to keep your utilities connected to the empty house, and keep the utilities running at a minimal level you will still need to pay utility bills on empty property.
The amount you pay will depend on your water, electricity and gas provider and the area you live in. It’s important that you check with your provider to see how much you will be paying.
Is unoccupied home insurance more expensive?
In the UK, unoccupied home insurance is often more expensive than a standard home insurance policy. This is because it provides you with specialist cover and insurance providers see vacant properties as having a higher risk due to the increased risk of the property being broken into or having squatters move in.
If you are looking to buy or sell a vacant property, then you’re in the right place! Here at The Property Sourcing Company, we deal day and night with unoccupied and occupied properties ready for investors to make their mark … and profit.
We have over 75 years of combined experience in dealing with off-market investment opportunities, putting the right properties in front of the right people. Our customer service team has been rated excellent by hundreds of people and will ensure that the entire property investment process is as seamless as possible.
We can help you start, grow or sell your property portfolio and assets, want to get the ball rolling today?
Start your property portfolio today!
Are you faced with managing an empty house and concerned about the costs associated with maintaining a vacant property? Well, you are not alone — most investors face periods of voids between tenants in which their properties lie unoccupied.
When faced with a property which is set to be empty for an extended period of time; there are several council tax bill implications and additional charges to explore while ensuring your property is secure for mortgage and home insurance providers.
Whether you’re a landlord looking to safeguard your assets on a temporary or emergency basis, or a homeowner seeking to protect your property and privacy we will provide you with how you can protect your vacant property.
A vacant property is one that is entirely empty; there are no personal items, belongings, furniture or appliances left within the property. Empty properties are legally considered vacant when the property has been left empty for more than 30 days. A vacant property can be either residential or commercial.
Vacant houses tend to have some overlap with unoccupied properties, except the fact that an unoccupied property may have belongings still within the property. Empty houses often have no interest from market buyers and are usually only sold off-market – through a sourcing company like us!
Why do properties become vacant?
A vacant property may become empty if:
- It has been classed as abandoned or is considered derelict.
- The owner has moved into a second home but hasn’t sold the original property.
- The owner of the property is awaiting renovations to begin.
- The property is currently in a void period as the former tenants have left.
How long can I leave my house unoccupied?
Technically, you could leave your property unoccupied for however long you want or have too. But, most home insurance providers will only cover an empty property for 30 to 60 consecutive days.
You may also face pressure from your mortgage lender who may hold eligibility criteria for maintaining your vacant property.
When properties are left vacant for extended periods, they may fall victim to several problems due to a lack of regular maintenance like:
- The building interior and exterior structure may slowly deteriorate.
- Windows become damaged.
- Gutters become blocked
- Paint may peel.
- Gardens become overgrown.
- Dust will accumulate.
- Mould will grow & dampness will increase.
Why do vacant houses deteriorate?
A vacant house in the UK will face deterioration without property maintenance. It doesn’t matter what season you leave a property unoccupied for, if it is left for months on end without a good clean or inspection then it will begin to face neglect.
The small issues like too many leaves in the garden, or windows that don’t shut properly may snowball into much larger issues like gutters becoming blocked and wind flowing through the property.
Should I turn off the boiler in an empty house?
It depends on the season or outside temperature; if it is summer then it may be worth just turning the heating on low for the first couple of hours in the morning to ensure it doesn’t get too cold.
To avoid extreme deterioration of a vacant house in the winter months, it may be wise to keep the heating on all day and night but keep the thermostat at a very low temperature – usually around 12 degrees. This will prevent your property and pipes from freezing over, and decrease the risk of burst pipes.
Alternatively, you could drain all your plumbing and heating systems within the empty property. This will greatly reduce the risk of a burst pipe, and is especially necessary if you think the vacant house will remain unoccupied for months at a time.
How do you protect a vacant property?
Vacant houses are more susceptible to vandalism, theft and squatting as many empty properties are quite obviously unoccupied. Securing vacant property can be relatively simple, you should try and imitate that someone is still living within the property.
This can be done by:
- Keeping security systems activated & installing CCTV.
- Keeping the vacant property maintained inside and outside, making sure that the garden and driveway are well kept if needed.
- If there are any appliances within the property (ovens, washing machines, etc) ensure that they are switched off to avoid fires.
- Use smart home devices to create the illusion that the property is in use – This could be done using smart lights or TV’s on a timer, or a smart doorbell used to speak to anyone approaching the front door.
- Utilise specialist vacant property home insurance to get the best possible cover for your situation.
You are exempt from paying business rates on vacant residential property in the UK for an initial three-month period. However, if you’re in the process of selling a house during probate, this exemption extends to six months. For vacant industrial properties, the rate-free period is also six months, but after this grace period, full business rates are applicable.
In order to initiate a new rate-free period, the empty property must be occupied for a continuous six-week period before being left empty again. Any change in ownership, leaseholder, or tenant nullifies the possibility of another rate-free period.
Are there any empty property rate exemptions?
Exemptions for unoccupied properties from business rates include:
- Properties with a rateable value before £2,900 from April 1 2017.
- Properties where occupation is legally prohibited.
- Properties subject to action from either the Crown or a council for purchase or occupation.
- Listed builds and ancient monuments.
- Properties to be used entirely or mainly for charitable purchases by a charitable ratepayer.
- Properties designated for complete or mainly sporting activities by a Community Amateur Sports Club (CASC) ratepayer.
- Properties fully exempt from business rates.
- Properties where the ratepayer’s only association is as the personal representative or executor of a deceased individual.
Unoccupied properties can also qualify for exemption if they fall under specific insolvency or debt related scenarios, such as:
- A bankruptcy order in relation to the ratepayer or their estate.
- A company in administration, undergoing liquidation, or facing a winding-up order.
- A ratepayer serving as a trustee under a deed of arrangement.
It depends on how long the property has been empty for. An empty property which has been empty for under 2 years will be charged the same amount of council tax as an occupied property. If a property has been empty after 2 years, but under 5 years, then it is charged twice as much council tax as an occupied property.
Properties which have been empty for more than five years are charged three times the amount of council tax and an occupied property.
The council tax levy is as follows:
- Under 2 years: the same as occupied properties.
- Over 2 years, below 5 years: 100% levy.
- Over 5 years: 200% levy.
What vacant property council tax regulations are there?
If you own an unoccupied and unfurnished property then you may be able to receive a full exemption from council tax for one month, but this can only be used once and is regardless of ownership.
If the property is deemed uninhabitable, and is unoccupied and unfurnished due to its condition then the property will qualify for the same exemption.
Are there any council tax exemptions for empty properties?
Some empty or vacant properties may be exempt from council tax beyond the one month, like:
- If the empty house is owned by a charitable organisation – exempt for 6 months.
- The vacant property has been left by someone who is in prison.
- The property owner is in personal care in a hospital or home elsewhere.
- The vacant property has been left empty by students.
- The empty property is awaiting probate or letters of administration to be granted – exempt for 6 months.
- The property has been repossessed by the mortgage provider.
- The building is the responsibility of a bankrupt’s trustee.
- The home is empty because the occupation is forbidden by law.
- The vacant property is waiting to be occupied by a minister of religion.
- The empty home or dwellings annexed to another dwelling that cannot be let separately.
Do you pay utility bills on empty property?
If you are following the general advice to keep your utilities connected to the empty house, and keep the utilities running at a minimal level you will still need to pay utility bills on empty property.
The amount you pay will depend on your water, electricity and gas provider and the area you live in. It’s important that you check with your provider to see how much you will be paying.
Is unoccupied home insurance more expensive?
In the UK, unoccupied home insurance is often more expensive than a standard home insurance policy. This is because it provides you with specialist cover and insurance providers see vacant properties as having a higher risk due to the increased risk of the property being broken into or having squatters move in.
If you are looking to buy or sell a vacant property, then you’re in the right place! Here at The Property Sourcing Company, we deal day and night with unoccupied and occupied properties ready for investors to make their mark … and profit.
We have over 75 years of combined experience in dealing with off-market investment opportunities, putting the right properties in front of the right people. Our customer service team has been rated excellent by hundreds of people and will ensure that the entire property investment process is as seamless as possible.
We can help you start, grow or sell your property portfolio and assets, want to get the ball rolling today?
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