The UK government has recently announced a significant change in council tax regulations that will positively impact tenants and landlords of Houses in Multiple Occupation (HMOs). Let's delve into what these changes entail and how they will benefit those living in shared housing.
The Big Change
The Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (England) Regulations 2023 have been introduced, marking a significant shift in the way council tax is levied on HMOs. Previously, rooms in some HMOs were assessed as separate units for council tax purposes, leading to tenants in single rooms being liable for the same council tax as those in an entire apartment or small house.
Alleviating Financial Strain
This led to some tenants facing crippling back-dated bills running into thousands of pounds. The new policy aims to alleviate this financial strain, potentially saving tenants up to £1,000 a year. The National Residential Landlords Association (NRLA) has been a key player in campaigning for this change, resulting in HMOs now being classed as a single property for council tax purposes. This not only reduces costs but also simplifies administration for landlords.
Legislation Details
The Department for Levelling Up, Housing and Communities is set to bring forward legislation ensuring that HMOs are given a single council tax band for one property. This places the greater responsibility of council tax with landlords while protecting tenants from additional financial pressures. These measures are expected to be laid out soon and come into effect before the end of the year.
What This Means for Tenants and Landlords
This change is a welcome relief for many living in shared housing. It streamlines the financial responsibilities and offers a fairer approach to council tax in HMOs. For landlords, it simplifies the process and reduces administrative burdens.
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