HMO'S AND COUNCIL TAX

Mar 07 | 2022
Local Authorities have been criticised by the way they can now calculate council tax on HMO properties.  As a result of this new way of calculating how much tax is due, there will be an increase for Landlords renting a HMO property in England. A report in the Telegraph news paper (Feb 2022) states that a trade minister has described the tax raise as a 'growing problem' and that the way it is calculated as 'arbitrary'. With over 500,000 homes in England being classed as HMO's, this could easily impact on the supply of rental houses. It appears that houses are being re-evaluated by Local Authorities as 'multiple smaller properties', for example, if there is a property with 5 rooms, there is 5 sets of council tax. As there is a housing crisis in England, it seems a rather strange way of encouraging more properties to meet the growing need.

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