Answered by Mufti Mohammed Tosir Miah
Is Zakat obligatory on properties
If a person brought a property there are three possibilities.
If he brought it for re-sale then he has to give zakat on the market value of the property every year.
If he brought it for his own personal use, then there is no zakat.
If he brought it and at the time of buying it, he made no intention regarding it, there will be no zakat. However, when he sells the property the money acquired should be added onto his other zakatable assets and zakat given thereupon. (Aapke Masail p.371 v.3)
When calculating zakat on the property (i.e. in the first scenario), zakat must be calculated according to the current market value of the property each year and not on the purchase price. (Ahsanul Fatawa p.299 v.4)
Regarding your situation, Zakat will not be obligatory upon you as you did not purchase or build the house for re-sale. Zakat would have been given if the house was on rent. It will be added on to ones other zakatable assets and 2.5% will be given from it as zakat. (Fatawa Darul Uloom Deoband p.154 v.6)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham.