New Regulations Target Empty UK Residential Properties
Owners of long-term vacant homes face higher tax premiums and new management oversight as officials tackle housing shortages.
Updated on Oct. 30, 2026 in Commercial
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Should local governments impose tax penalties on owners of long-term empty residential properties?
Scotland and England have implemented stricter regulations to address the rising number of long-term empty residential properties. As of April 1, 2026, Scotland removed its council tax premium cap, while England announced plans to allow local councils to pursue management orders for homes empty for six months.
Why it matters
With approximately 750,000 empty homes across the UK, these policy shifts aim to discourage property vacancy and bring dormant housing back into use. The move addresses the financial and social costs of long-term vacancies, which include property value impacts and reduced local housing supply.
Scotland now applies a default 100% council tax premium on homes empty for over 12 months, following the removal of the previous cap on April 1, 2026. In 2025-26, the Scottish Empty Homes Partnership successfully returned 2,285 homes to use, assisted by £700,000 in repair grants.
The players
Scottish Empty Homes Partnership
A collaborative agency that works to identify long-term vacant housing and provide guidance to owners on bringing units back to the market.
UK Government
The national authority responsible for setting housing policy and administrative frameworks for local council management orders.
The details
To manage long-term vacancies, Scottish councils now have greater flexibility to set tax premiums without the prior 100% cap. In England, local authorities are gaining the power to pursue Empty Dwelling Management Orders for properties that have sat empty for six months, a mechanism designed to force owners to return the units to the market. Support from dedicated Empty Homes Officers remains the primary driver of these outcomes, accounting for nearly 90% of returns to use in Scotland.
Timeline
The Scottish Empty Homes Partnership began tracking statistics in 2010.
The council tax premium cap in Scotland was officially removed on April 1, 2026.
Aberdeen reported 6,124 empty homes as of 2026.
New plans for English management orders were announced on September 27, 2026.
The Home Front
The push to regulate vacant properties mirrors established trends in managing local housing supply via fiscal incentives and management orders. These interventions reflect a shift toward using tax premiums to discourage long-term vacancy in competitive markets.
Owners of long-term vacant properties should review their local council tax status and any applicable premiums for homes left empty over 12 months. Those considering refurbishment may want to check with local housing officers regarding the availability of repair and grant programs.
The takeaway
These regulatory changes signal a move toward more aggressive oversight of vacant residential property to boost local housing availability. Owners of empty units should check with their local council regarding current tax obligations and potential grant programs for property refurbishment.
Further reading
Learn more about the latest housing trends in our Commercial section.
Source note: This article includes information reported by Mortgage Professional America Magazine.
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Should local governments impose tax penalties on owners of long-term empty residential properties?
