Wales to treat HMOs as single dwellings for council tax
Propertymark’s Tim Thomas has welcomed the Welsh Government’s plan to follow England and treat HMOS as single dwellings with a single Council Tax bill.
The Welsh Government is seeking feedback on draft legislation that would treat HMOs as single rather than multiple dwellings for Council Tax purposes.
The existing system, the Government says, where council tax is ‘disaggregated’ and billed for each HMO room as a separate dwelling, has resulted in contract holders paying more than other residents on the same street, leading to an unfair and inconsistent billing system.
By treating HMOs as a single unit, the system should be less complicated and will enable landlords to pay the Council Tax and proportion the final cost to each resident.
Council Tax being disaggregated needs some urgent reform.”
Propertymark has welcomed the proposals. Policy and Campaigns Officer Tim Thomas (main image), says: “The existing system that results in council tax being disaggregated needs some urgent reform.”
“We end up with a disproportionate billing system, where contract holders are paying more than other residents in the same area.
Expensive bills
“Furthermore, local authorities should be prohibited from charging landlords Council Tax even after the tenant has moved out with no forwarding details.
“It would be better if Council Tax is slashed for contract holders as a result of the suggested changes from the Welsh Government, as HMOs become a very popular and affordable choice for low-paid contractors or those receiving means-tested benefits at a time when people are already struggling with expensive bills.”
The Welsh decision follows a similar one by England’s government folllowing a well-organised lobbying effort by several senior figures from the industry and MPs.
