Wales to follow England with U-turn over HMO council tax
The Welsh government has begun a consultation on whether HMOs should be treated as a single entity for council tax.
The Welsh government has begun a consultation on its proposal to levy council tax on HMOs per property rather than on individual occupants.
In England the practice of disaggregation or the splitting of HMOs into single units for council tax purposes was ended in 2023.
The changes were made after many in the property industry had criticised it for being little more than a means for cash-starved councils to make money off the back of some of the poorest members of society.
HMOs provide an important source of accommodation for many people across Wales from all walks of life.”
It was estimated that after the rules were changed tenants were saving up to £1,000 a year in council tax.
In her consultation statement, Rebecca Evans MS, Welsh Cabinet Secretary for Finance, Constitution and Cabinet Office would appear to be taking a similar view, saying: “HMOs provide an important source of accommodation for many people across Wales from all walks of life.
“This type of accommodation is lived in by families, young professionals, students and supports some of the most vulnerable and disadvantaged groups, such as those on low incomes.”
The formal consultation is seeking views on the draft regulations from taxpayers, councils, landlords, HMO owners and tenants. The consultation will run for 12 weeks, and responses are required by 26 November 2024.
