{"id":162531,"date":"2026-06-01T14:00:12","date_gmt":"2026-06-01T13:00:12","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=162531"},"modified":"2026-06-01T14:00:12","modified_gmt":"2026-06-01T13:00:12","slug":"council-tax-on-empty-homes-damaging-smes-say-hbf","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/council-tax-on-empty-homes-damaging-smes-say-hbf\/162531\/","title":{"rendered":"Council tax on empty homes damaging SMEs, say HBF"},"content":{"rendered":"

A new Home Builders Federation<\/a> (HBF) council tax report says that councils are placing pressure on already-strained developers<\/h2>\n

The report, titled Licence to Bill, reveals that council tax on empty homes, many of which are unfurnished, is putting many developers at risk.<\/p>\n

The report shows that nearly half of local authorities are charging developers the full council tax rate on newly built homes before they are sold or occupied, meaning developers must pay.<\/p>\n

Many factors are outside of developers\u2019 control<\/h3>\n

Developers face delays to utility connections, labour availability, and material shortages, mean that homes are frequently not ready for sale or occupation, but are still considered \u201csubstantially complete\u201d for council tax purposes.<\/p>\n

As homes are unable to be lived in, the report states that they have no direct cost on the council.<\/p>\n

The report furthermore states that 88% of SME home builders have said they are affected by council tax charges hitting their cash flow and their ability to deliver future sites. This has a direct impact on site viability.<\/p>\n

As taxes, policy, and other costs<\/a> have increased, this is an unnecessary and damaging extra cost to level against developers, say the HBF.<\/p>\n

A new framework is needed<\/h3>\n

In order to mitigate the damage caused to SMEs by council tax on empty homes, the HBF report proposes that the government:<\/p>\n

    \n
  • Introduce a clear and consistent national framework for the application of council tax to newly built homes, where properties are only judged substantially complete at the point a building control completion certificate is issued.<\/li>\n
  • Reinstate a time-limited Class C council tax exemption for newly built dwellings that are unoccupied and substantially unfurnished. A 12-month exemption from the date of completion or entry into the valuation list would provide a fair and consistent national approach that recognises the time required to bring new homes into occupation.<\/li>\n
  • Exempt new build homes from the Empty Homes Premium and Second Homes Premium for two years from the date of completion or entry into the council tax valuation list.<\/li>\n<\/ul>\n

    Neil Jefferson, chief executive of the Home Builders Federation, said: \u201cGovernment attempts to increase housing supply are being thwarted by huge increases in taxes and policy costs that are making many sites unviable while a lack of affordable mortgage continues to supress demand.<\/p>\n

    \u201cCharging council tax on incomplete new build homes before they are sold, occupied or, in some cases, fully ready to live in places further pressure on cash flow and can make the difference between a site being viable or not.<\/p>\n

    \u201cThese properties are not long-term empty homes, second homes or homes deliberately withheld from occupation. They are new homes being brought to market in challenging circumstances, often by the smaller businesses Government has repeatedly said it wants to support.<\/p>\n

    \u201cWe are urging Government to introduce a clearer, fairer and more consistent national approach and to remove this damaging additional tax on development that is acting as yet another barrier to SME builders staying in sector.\u201d<\/p>\n

    \n<\/div>","protected":false},"excerpt":{"rendered":"

    The Home Builders Federation have released a new report investigating council tax on empty homes and its effects on SME developers.<\/p>\n","protected":false},"author":32,"featured_media":162532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,173241,173172],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-162531","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-hbf","10":"tag-local-authorities"},"acf":[],"yoast_head":"\nCouncil tax on empty homes damaging SMEs, say HBF<\/title>\n<meta name=\"description\" content=\"The Home Builders Federation have released a new report 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