HMO Council Tax Reform

For some time now there has been somewhat of a black cloud looming over the HMO strategy… The implementation of Council Tax billing per bedroom rather than per property.

One of the biggest attractions for HMO tenants is knowing that their bills are “all inclusive”. The introduction of paying Council Tax per bedroom and the financial implications for residents, has seriously threatened this.

Last week, Dame Caroline Dinenage secured a key concession in the debate on the Levelling-up and Regeneration Bill on the Council Tax valuation of rooms in shared living accommodation.

Caroline said:

“There is a huge financial strain on people, often young professionals, at the very start of their careers, suddenly landed with a council tax bill of up to £1000, even once they’ve allocated the single person discount.”

“Shared housing is a core pillar of the housing sector. In 2018, HMOs provided 3 million sharers with rental accommodation across England and Wales. So this has the potential to become a major problem.

“Council tax is a property tax, it is not a head tax, and it should not be down to individuals who are simply paying for a bedroom to foot this bill.”

This issue is one that’s sensitive to us here at Brentor Property, as one of the worst affected areas is Portsmouth. We pride ourselves on being able to provide affordable, high-quality shared accommodation for young professionals and students, so this positive engagement on the issue is great news!

Well done Dame Caroline Dinenage and everyone else campaigning for this change!