Landlords are being hit significantly by Council Tax HMO changes

By | August 23, 2017


LGFA92 have been seeing a recent increase in the number of local and national HMO (House in Multiple Occupation) landlords who have been receiving a nasty surprise from the Valuation Office Agency and their Local Authority.

It is becoming apparent that an increasing number of HMO owning landlords have been receiving backdated Council Tax demands because the Valuation Office Agency have being retrospectively amending the Council Tax banding on their properties.

It can come as a nasty, and expensive, surprise when a landlord finds that their property has changed from a single Band C or Band D dwelling to one consisting of half a dozen, or more, Band A properties.  It’s easy to see how the property can  go from costing £1,300-£1,400 per year for the entire property to £1,000 per year for each individual unit and it becomes the landlord’s problem to sort it out.

Once the Valuation Office have determined that the property should be changed to individual units for Council Tax purposes then your Local Authority have no real choice other than to issue the landlord with demand notices for all of the Council Tax charge. There is no practical limit as to how far the changes can be backdated so it’s easily possible for a landlord to suddenly receive £30,000 of charges and a 14 days to pay them in.

In these cases it’s imperative that a landlord provides the Local Authority with proof of the occupier’s details for each of the units otherwise they will be faced with paying the charge – in many cases the self contained properties will no longer be Council Tax HMO’s. If you can’t provide the proof then you it may well result in a long, drawn out, journey through the Magistrates’ Court and the Valuation Tribunal to fight your corner.

It’s not surprising in cases like this that good quality, independent, assistance is essential for a landlord to have and LGFA92 are here to help.

Advice & Assistance from LGFA92

Good quality help with your Council Tax dispute can be hard to come across – there’s a lack of independent, expert, places where you can get the help you need however LGFA92 are here to change that. See how we can help today

Contact us today. Email us at [email protected], Call our Council Tax helpline on 0191 6451118.

This article is solely the view of LGFA92, the Council Tax experts, based on our interpretation of legislation. Your local authority is free to dispute this view. A binding decision may require the intervention of a valuation tribunal.