Council Tax Band Review for HMO’s
The proposed UK Government review of the council tax band system, particularly concerning Houses in Multiple Occupation (HMOs) may seem a little dry, but trust us, it’s a conversation to have, so let’s unpack this for you.
Council tax band review
The council tax band system, as we currently know it, has been in place since 1991.
To say it’s a bit outdated is probably an understatement. The proposed review, long overdue in the eyes of many, aims to reassess council tax bandings to better reflect the current housing landscape.
One of the key areas of focus is Houses in Multiple Occupation (HMOs). As anyone who has lived in or managed an HMO can tell you, these properties present a unique set of circumstances that the current system may not adequately address.
The role of Propertymark
The good news is that Propertymark, the professional body for letting agents, actively participates in these ongoing discussions.
They’ve been tirelessly working to consider the views and concerns of both landlords and renters of HMOs during this review. Their involvement brings expertise and insight to the process, which should, in turn, lead to more fair and balanced outcomes.
The implications for renters and landlords
So, what does this mean for renters and landlords?
For renters, a revised council tax system could lead to a fairer distribution of council tax bills. The current banding system can sometimes result in uneven council tax charges for residents in HMOs. By reassessing these bandings, renters could find their council tax charges more fairly reflecting the nature of their accommodation.
For landlords, an updated council tax banding could provide clarity and consistency. Understanding exactly where their properties fall within the tax bands will make it easier to manage budgets and set rental prices. Plus, with Propertymark in the mix, landlords’ voices are being heard during the review process.
Council tax band and moving forward
This UK Government review is a pivotal step towards modernising the council tax system. With the input of Propertymark, we’re hopeful that the outcomes will provide a fairer system for all involved in HMOs – renters and landlords alike.
While the specifics are yet to be ironed out, the fact that such a review is underway is a promising development. We’ll be keeping a close eye on this topic and will continue to update you as more details emerge.
Last Updated: September 22nd, 2024
