Landlords win HMO council tax battle

Renters in shared homes could save up to £1,000 each in council tax after the Government agreed with property industry leaders that the current system was unfair.

Both the National Residential Landlords Association (NRLA) and Propertymark argued that it was wrong to allow individual tenants in HMO houses to pay council tax.

The Government announced last week it will end the practice of banding individual rooms in shared houses separately for council tax purposes after consulting the sector earlier this year.

The decision, which will come into effect by the end of this year, will mean HMOs will be classed as a single property, and NRLA estimates that the average HMO tenant stands to save up to £1,000 a year.

Unjust

Ben Beadle, CEO at NRLA, says: “We are delighted that the Government has listened to NRLA and others and will end the unjust practice of charging council tax on individual rooms.

“Not only will it save tenants money, it means landlords will once again be able to let rooms inclusive of council tax, making it easier for renters to budget.

“We look forward to the necessary changes being implemented without delay.”

Overwhelming

The Government says an overwhelming number of respondents to its consultation said the current system was unfair, with “broad support” for its proposal to make one council tax charge for each HMO property.

“The amendment to legislation will ensure that HMOs will be valued as a single property, creating consistency in the sector, and provide certainty for councils and households moving forward,” the Department for Levelling Up, Housing and Communities says.

“This should also help ease administrative burdens for councils as the council tax liability should remain with the landlord in the usual way, rather than moving to individual tenants who may only occupy the property for a short period of time.”

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