What is the Council Tax on a Second Home in East London?

As a landlord in east London, there may be times when you will be required to pay council tax for the property. When you are budgeting for your rented property, it is a good idea to have a pot of money set aside for expenditure including maintenance, council tax and utility bills.

In areas where there is high demand for rented properties, such as Ilford and Stratford, void periods will usually be minimal. However, landlords need to be prepared for any times that they will be responsible for paying the council tax on second homes.

This guide provides an overview of when east London landlords need to pay tax on their properties, as well as the exemptions they are entitled to. We also explain the recent changes that include a council tax premium being applied in some situations.

Do You Pay Council Tax When Letting A Second Property?

Most landlords do not pay council tax when letting a second property. If the property is occupied by one tenant, joint tenants or a family, they will usually be responsible for paying the council tax on the property. The tenancy agreement should stipulate that tenants are responsible for paying the council tax.

When properties are empty or if you rent out an HMO, landlords will typically be responsible for paying the council tax. There are some exemptions to this, which we cover in the following sections.

With the UK government recently introducing council tax premiums on second homes in England, some property owners will be required to pay more council tax, depending on the circumstances.

When Are You Liable For Second Home Council Tax?

The most common situations when landlords are liable for paying council tax are:

• When the property is empty – When the property is unoccupied, for example, the time in between one tenant moving out and another tenant moving in, the landlord will usually be liable for paying the council tax.
• HMOs – Where a property is rented as an HMO (House in Multiple Occupation), there is one council tax bill for the whole property, that the landlord is liable for paying. Most landlords incorporate council tax and utilities into the rent payments.

What Are The Exemptions To Second Home Property Tax?

There are certain exemptions where council tax is not charged or a discount may be applied:

• Student tenants – Properties where all occupants are tenants are full-time students do not have to pay council tax.
• Grant of probate/letters of administration – When selling a property on behalf of someone who has died, a 6 month council tax exemption may be granted.
• Apprentice schemes – People on apprentice schemes are usually exempt from paying council tax.
• Unhabitable properties – Where a property cannot be lived in because it is derelict or undergoing renovations, the council may decide that council tax is not chargeable. More details regarding this are outlined in the next section.

Sole occupants may also apply for a discount, so they do not have to pay the full council tax. You should check the local authority’s website to see a full list of the potential discounts and exemptions for the council that your property comes under.

Council Tax On Derelict Homes And Homes Under Renovation

If you have a property that is derelict or undergoing major renovation, you should contact the council to see if they will delete the property from the council tax band list. This will generally only be for situations where the property has structural alterations or the property is being repaired after severe flood damage, for example.

Second Home Council Tax In East London

The amount of council tax that you pay for a second home will depend on the local authority and the council tax band the property falls into. In Barking and Dagenham, the council tax bands for 2025 to 2026 start at £1,398.76 and the top band is £4,196.29 per year. There is also a long-term empty premium for unoccupied properties. If a property in Barking and Dagenham is empty for 1-5 years, a 100% premium is charged by the London Borough of Barking and Dagenham.

Newham’s 2025 council bands range from £1,237.30 to £3,711.92 but the council states that you can apply for a 100% council tax discount for one month from when it becomes unoccupied and substantially unfurnished. Property that remains empty and unfurnished for more than 12 months is subject to a 100% surcharge on top of the full council tax charge.

The council tax bands for properties in Waltham Forest range from £1,518.43 to £4,555.30 for the 2025 to 2026 year. Again, there is a 100% empty property premium if a property is empty for 1 to 5 years.

Changes To Council Tax On Second Homes In 2025

In April 2025 the UK government introduced changes to increase council tax on second homes that are not used as a sole or main residence and are substantially furnished. Under the changes, councils have the discretion to apply a 100% additional home council tax premium. The changes also targeted long term empty properties, with an empty homes premium of 100% to 300% applied depending on how long the property has been empty.

For landlords who rent properties out, these additional charges don’t apply as tenants are residing in the property. However, for people who have a property classed as a second home, such as a holiday home, the premium means they effectively pay double council tax on their second property.

How To Avoid Second Home Council Tax

To avoid paying tax on second homes, some property owners have decided to rent their property out. Registering the property as a business and letting it as a holiday let is one way to avoid paying second home tax. However, the property must be let for at least 70 nights within 12 months.

There are also several exemptions that can be explored, namely the tax exemptions for properties undergoing major repair.

If you are considering renting out your second home, we can help to find suitable tenants for your property in Leyton, Stratford and Barking. If you would like to know more about our letting services, get in touch.