What are Empty Home Grants?
Empty homes are a growing issue in the UK. In 2024, the number of unoccupied homes rose to 265,061 – the highest rate since 2011.
Statistics published by the Ministry of Housing in 2020 indicate that there are 648,114 vacant properties in England. 238,306 of these are long-term vacancies.
This may be because of home renovations, gaps between tenants in rental properties, probate and more. However, it can also be down to more worrying issues, such as buildings not being in a liveable condition.
For this reason, some governments and local councils in the UK have taken steps to curb the rise of unoccupied homes through VAT relief schemes or empty home grants.
After over 18,000 insurance packages sold, Homeprotect’s team have seen it all, especially when it comes to unoccupied properties. In this guide, the experts at Homeprotect explore the details of these empty home schemes, the criteria for applying and why they’re beneficial for both homeowners and the growing empty home crisis.
How Unoccupied Homes Schemes Work
An unoccupied home grant is a financial program used by local councils to get empty homes back into residential use – often to counter urban decay and housing shortages.
To qualify for these schemes, a property must be empty for an extended period. This can be anywhere from 6 months in England, depending on the local council, to 12 months for Wales’s National Unoccupied Home Grant scheme.
These grants allow property developers, homeowners and housing associations to access funds to improve and renovate unoccupied properties to make them habitable again.
How are Councils Helping?
Alongside grants, many councils will offer council tax reductions or assistance in selling a property if the renovation is too big to handle alone.
One of the biggest reasons for buying, converting or renting out an unoccupied home is the standard VAT rate discount.
If a home has been unoccupied for up to two years, standard VAT rates on experienced tradesmen qualify for a drop from 20% to only 5%.
If that same property has been unoccupied for 10 years – and you are converting what was a non-residential property (such as a church, commercial building or other public building) – that VAT rate drops to 0%.
Before work begins, make sure your insurance policy covers unoccupied properties, especially during renovation.
During long periods of unoccupancy, it may be at risk from external parties who see the property as entirely abandoned.
Unoccupied properties are also at risk of damage from untreated leaks or other structural issues.
To avoid this outcome, see our guide on protecting a vacant property.
The Criteria for Applying for Empty Homes Grants
The specific criteria for applying can change based on the local council involved. Below is a summary of the general criteria most councils require to apply for an unoccupied homes scheme:
- Property Status: The property must be unoccupied for a set period, often anywhere between 30 days and 6 months.
- Property Conditions: The property must meet a baseline level of structural safety or require renovation.
- Ownership: The person applying for the grant must be the legal owner of the property.
- Council Restrictions: The applicant must comply with local council criteria, including planning permissions and building regulations.
- Intention to Occupy: The applicant must intend to occupy the property after the renovations. Either by renting it out or moving in themselves.
- Financial Assessment: Some councils will conduct a financial assessment on the applicant to determine if they’re eligible to receive funding and grants.
- Previous Grant Compliance: If the applicant has previously received funding through the scheme, they’ll need to show evidence of compliance with previous grant terms.
How Much Money Can Be Earned from Unoccupied Homes?
The amount of money you can make on an unoccupied home varies depending on the size of the property and its intended use.
Rental costs for properties in 2025 are on average £1,368, with homes in the northeast of England having some of the largest price inflations – at just under 6%.
Sale prices can also vary by region, but the average cost of a two-to-three-bedroom house in the UK in 2025 is £267,200.
When combined with VAT discounts, using the empty home grant scheme to sell or rent a property could prove valuable for those with an unoccupied property.
Timelines for Accessing Empty Homes Grants
The length of time between applying for an unoccupied home grant and receiving support can vary depending on the circumstances of an unoccupied property:
- Application Approval Time: Councils aim to issue formal approvals within 12 weeks of a submitted application. This time varies depending on land registry checks and the availability of council resources.
- Documentation Process: Before a formal approval is issued, applicants need to provide evidence of ownership and estimates for the proposed work costs. An application approval process cannot start until these documents are provided.
- Payment Schedule: Once the grant is approved, there are usually three windows for payment within a grant timeframe of 9 months. This includes two minor payments, before one final payment reliant upon the completion of works.
- Completion: After the works are complete, a surveyor will need to assess the property and confirm that the completed works mirror the approved schedule.
While the initial approval process can take up to 12 weeks, the process of payment, works and the final survey can take several months.
Waiting for approval? It’s still worth insuring the property, even if no work has started yet.
How Coverage of Schemes Differs Around the UK
Government support for unoccupied homes grants differs across the UK.
Wales, Scotland and Northern Ireland have a fully realised, national-level empty homes grant scheme, while England offers schemes at county levels, which vary in quality and complexity.
Empty Home Grants in England
Empty homes schemes in England are often managed at the council level, with no national program specifically targeting unoccupied homes.
This means the support for renovating unoccupied homes varies depending on region and local council.
Empty Home Grants in Wales
The Welsh government has implemented the National Empty Homes Grant Scheme, which covers significant portions of home renovation costs of up to £25,000.
They are available to homeowners, registered social landlords and community housing groups.
Properties must be registered as empty for at least a year before they qualify.
Empty Home Grants in Northern Ireland
The Housing Executive scheme exists in Northern Ireland to manage empty home initiatives.
Similar to Wales, grants are available for renovation – but the specifics of the grant size and requirements vary depending on the local county authority.
Empty Home Grants in Scotland
Local authorities in Scotland can create their own empty homes scheme, supported by the Scottish government through the Empty Homes Fund.
The type of financial assistance offered to local councils comes in the form of loans and grants.
Unoccupied Property Insurance with Homeprotect
Homeprotect unoccupied property insurance protects your home while it’s left vacant for more than 30 days – including while it undergoes work supported by empty homes schemes.
We offer both basic and extended cover for a 12-month period. Basic cover includes risks of fire, lightning, earthquakes and public liability, while our extended cover includes a wider range of insured events.
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The criterion for an empty home differs by industry. To qualify for empty homes schemes, a residential property typically has to be empty for over 6 months. At Homeprotect, we consider a property to be unoccupied if it is unfurnished or hasn’t been lived in by you or your guests for more than 30 consecutive days.
Councils don’t have the right to directly claim residential properties, but they can impose measures to bring them back into occupancy. These include empty property taxes, penalties on owners and Empty Dwelling Management Orders (EDMOs). They have the authority to manage and develop schemes for vacant homes to reduce homelessness and improve local housing availability.
In 2024, the number of unoccupied homes rose to 265,061, which is the highest rate since 2011. There are ongoing efforts, like the Empty Homes Grants in Wales, to address unoccupied properties and housing shortages for the local community.
The Empty Homes Grant provides funding to owners of vacant properties to help support their renovation and reoccupation. These schemes are run by local councils, and the grants aim to restore unoccupied homes to a liveable condition.
Your Questions Answered
Whether or not you drain the water supply to your home before vacating it may depend on the duration of absence and the time of year. While stopping the water supply can prevent risks like burst pipes and flooding, it can also leave your home susceptible to cold temperatures and the negative effects, such as dampness and mould. If you are leaving the property for a short period during the summer, it may be sensible to drain the water supply, while this may not be the best idea when leaving a property for a whole winter.
Whether or not you leave the heating on in an empty home will depend on how long the property is empty and the time of year. During the summer, it may not be necessary to leave home heating on. However, during the winter, heating the home permanently at a low (but above freezing) temperature or on a timer can help prevent pipes from freezing and the property from suffering dampness or mould.
When a home is left empty for years, it means that no one is around to regulate the temperature and act on the early signs of damage. As a result, long-term unoccupied properties are more susceptible to damp, paint peeling, pests and even wear and tear to the building itself. Plus, these visual signs of neglect also make the property an attractive target to potential intruders.
Leaving a home empty for years also has implications for mortgages and home insurance – which may be invalidated or retracted if the property is unoccupied for a certain period.
Yes, most empty properties will still require the homeowner to pay council tax. However, you may be able to apply for an exemption in a few specific instances. This includes properties that have been unoccupied for two or more years, those undergoing a probate process, instances in which the owner is in the hospital or a care home and if the property cannot be lived in by law.
See the full list of empty property council tax regulations and exemptions on the government website.
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