Actually, the council wouldn't have to re-house anyone - the landlord would. Until any contract terms kicked in to declare the contract frustrated, the landlord is contracted to put a roof over the head of the tenant - so if the property becomes uninhabited, the landlord could have to foot hotel bills (our insurance specifically covers this ).
As to foregoing council tax, they probably have you there as well. Most only allow you a discount for a set period and under certain conditions, and "it just needs a new CU but you don't want to pay for one" wouldn't meet the rules for our LA. For ours it's something like "undergoing major structural repairs and has no sanitary facilities" - though the rules tend to change over time. I know a mate took advantage of this a few years ago - they let him off council tax for a while when he sent photos of the bathroom with nothing but the soil pipe poking up through the floor while we were working on it.
So potentially you have an empty property, you have to pay council tax as the tenant is no longer occupying it, and you also have to pay a hotel bill for the tenant.
As to foregoing council tax, they probably have you there as well. Most only allow you a discount for a set period and under certain conditions, and "it just needs a new CU but you don't want to pay for one" wouldn't meet the rules for our LA. For ours it's something like "undergoing major structural repairs and has no sanitary facilities" - though the rules tend to change over time. I know a mate took advantage of this a few years ago - they let him off council tax for a while when he sent photos of the bathroom with nothing but the soil pipe poking up through the floor while we were working on it.
So potentially you have an empty property, you have to pay council tax as the tenant is no longer occupying it, and you also have to pay a hotel bill for the tenant.