Westminster City Council has warned of a rise in homeowners attempting to avoid new council tax premiums on empty and second homes, as it prepares to work with the government’s National Fraud Initiative to crack down on evasion.
Since April, the council has doubled council tax bills for properties left empty for more than a year or classified as second homes, in a move aimed at easing pressure on housing stock.
Homes unoccupied for over five years now face a 200% premium, rising to 300% for properties vacant for more than a decade.
Council leader Adam Hug said the policy – designed to deter property underuse in one of the UK’s most in-demand housing markets – has been met with a “significant increase” in fraudulent claims.
ENFORCEMENT CHALLENGE
Hug told The Standard : “Owners are increasingly declaring properties as occupied or claiming single-person discounts to avoid higher charges.
“We’re fully supportive of these premiums, but enforcement remains a major challenge – especially when the primary residence is outside the borough.”
Currently, around 4,000 homes in Westminster are officially registered as second homes and 1,300 as long-term empty, but council officers believe at least 11,000 more are likely unaccounted for.
GREATER POWERS
The council is also urging the government to allow taxation of empty homes based on property value rather than council tax bands – echoing calls from London Mayor Sadiq Khan for greater local powers to tackle housing underuse.
Westminster, along with Wandsworth and Hackney, is among a growing number of London boroughs implementing the new premiums.
Despite the increase, Westminster still has one of the lowest council tax rates in the country, with the average Band D bill at just over £1,000.
Hug added: “Returning empty homes to use helps reduce temporary accommodation demand and preserves Westminster’s character.”
