This month we have received great news from the UK Government consultation in regards to the HMO council tax banding.
To date, HMO's have randomly be banded for council tax purposes and this is based on your council and your postcode. Campaigners including those at Your Property Magazine presented to the Department for Levelling Up, Housing and Communities that tenants and landlords think that the VOA assessments are unfair. The tenants see it as unfair as they could be asked to take on this new bill as landlords are absorbing so many other rising costs and must pass it onto their tenants.
Another win is HMO's with studio's are safe for being banded separately for council tax and the Government are to see these spaces as within the single property.
The outcome is ' the Government will make changes to deliver a framework that ensures that all HMO's are valued as a single property for the purpose of council tax'. This means that the current laws will be changed and no new laws are to be created.
Moving forward legislation will be in place by the end of this month and by February 2024 all HMO's can be banded in one council tax band. We are unsure if landlords will be able to back date any tax paid before these decisions are made but for the majority it is a huge win for 2023!
