Last Updated: September 1, 2025
What to do with someone’s home after they go into care or pass away can be a tough question to ask yourself, but the decision must be made. There are options available to you, you could move into the house yourself, rent it out or sell it. Whatever option you choose, there is a possible timeframe that everyone should be aware of.
The empty homes premium
Since 2013, the Government gave power to local councils to charge what is sometimes called the ‘empty homes premium’ which means that owners of empty properties are now charged higher amounts of council tax. The empty homes premium allows councils to charge higher rates of council tax on properties that have been unoccupied and/or substantially unfurnished for certain periods of time. The premium has been put in place with the hopes that it will encourage the owners of these empty properties to bring the properties back into use.
In April of 2024, the empty homes premium was strengthened to allow councils to charge the premium on homes that have been empty for one year or more, previously the minimum was two years. Furthermore, since April of 2025, councils have had the power to charge a premium of up to 100% additional council tax on second homes in their jurisdiction. This means that owners can be charged up to double the council tax because the property has remained empty or substantially unfurnished for more than a year.
The decision to charge the empty homes or second homes premium is discretionary, and entirely up to councils to decide whether or not to charge the premiums and at what rate.
Who is affected by the empty homes premium?
Any person that owns an empty home could be charged the premium. This includes people that have inherited a property through someone passing away or going into a care home that have not been able to sell it within one year of it becoming empty. However, if you can prove that you have been trying to sell the property within that time period, you may be exempt from paying the premium for another year.
When doesn’t the premium apply?
The empty homes premium doesn’t apply if the home has been let out, the home is empty due to the owner being in armed forces accommodation for job-related purposes or the home is an annexe being used as part of the main property.
From April 2025, addition exemptions have been introduced. A 12-month exemption may be applied if:
- You have had probate granted because the occupant has died. This 12-month exemption period runs from the date that probate is granted.
- Your property is undergoing major repairs or structural alterations. This exemption can only be used once until the property has sold.
- The property is being marketed for sale or let. This exemption can only be used once until the property has been sold or let for at least six months.
All of these 12-month exemptions can be used one after the other. However, these exemptions only apply to the premium not the entire council tax bill.
What are the chances of you being charged the empty homes premium?
The number of properties being charged an empty homes premium has been steadily increasing since it’s implementation in 2013. There was a large increase of over 40,000 extra homes being charged the premium, although this was most likely due to the change in the law that allowed for properties empty for one year instead of two to be charged the premium.
In 2023/24, out of the 296 billing authorities, 292 charged an empty homes premium. The four that did not were Amber Valley, Bolsover, Castle Point and Ribble Valley.
Out of the 292 properties charging the premium, 108 charged the full 100% premium on properties empty between one to two years and 279 charged the 100% premium on properties empty between two to five years.
So, the chances of being charged the empty homes premium at all are very high for a majority of people, with the chances of being charged the full 100% premium just as high.
What’s the difference between an empty home and a second home?
The law states that an empty home is one that has no resident and/or is insubstantially furnished. Whilst there is no statutory definition of ‘insubstantially furnished’, the courts have taken it to signify a property that is not furnished enough to be habitable.
If the home is substantially furnished however, you may be charged the second homes premium rather than the empty homes premium which can be up to 200% the normal council tax rate. The second home premium can be charged at any time from the time the property in not occupied.
What can you do to avoid the empty homes premium?
Whilst the answer seems simple, sell it or rent it, the journey to being able to do this is not a short or simple one. If someone has passed away and left their estate to you the first thing to do when it comes to the property and other items is to have the estate valued. This will inform you as to whether or not you need to pay inheritance tax on the estate.
The next thing you may need to do is apply for probate.
What is probate and who can apply for it?
Probate is the legal right to deal with someone’s property, money and possessions, known as their ‘estate’, when they die. You shouldn’t make any financial plans or put property on the market until you have received probate. Prior to applying for probate, it is important to check that it is needed, that you’re eligible to apply and whether there is inheritance tax to pay as discussed above.
Probate isn’t needed if the deceased person only had savings, owned shares or money with others (this is automatically passed to the surviving owners unless agreed otherwise), or they owned land or property as a ‘joint tenant’ with others (which again automatically passes to the surviving owners).
The named executor of the will or, if there isn’t a will, the closest living relative can apply for probate. You can apply for probate via post or online.
To get advice about probate, you can call 0300 303 0648 (open Monday to Friday, 9.00am to 1.00pm) or email [email protected]
Other steps when you inherit a property
If a loved one or friend has left you their property, you’ll need to update the property records to show who now owns the property. This can be done on the GOV.UK website.
If you decide to sell the property you may need to hire a conveyancer to help. A conveyancer is a legal professional who specialises in transferring property.
Further advice
Overall, the process of inheriting a house due to someone entering into a care home or through passing away is complicated. However, there is lots of advice out there if you need a little help and guidance with the process.
