16th
Nov 2023
Tenants in HMOs may be able to save as much as £1,000 each in council tax as the government has just agreed with private rented sector ‘heads’ that the system is unfair.
Two trade associations have repeatedly argued that it is inappropriate to charge council tax for individual tenants in HMOs.
Following a consultation held with the private rented sector earlier in the year the government has just announced it will stop the practice of councils banding individual rooms in houses of multiple occupation for council tax charges.
The government has stated its decision will be enacted upon by the end of the year and by the beginning of the new year HMOs will be treated as a single property, which a trade association says on average renters in HMOs should be able to save as much as £1,000 per year.
A spokesperson for the trade association, says: “We are delighted that the Government has listened to us 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.”
The government says the consultation drew in an exceptional number of respondents who said the current system of charging council tax on individual tenants in HMOs was unfair and has received “broad support” for its proposal to change HMO properties to just the one council tax charge.
The Department for Levelling Up, Housing and Communities says. “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.
“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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