The government has recently announced it will end the practice of classifying individual rooms in shared houses separately for council tax purposes – a practice known as ‘disaggregation’. The decision will mean houses of multiple occupation will now be classed as a single property, reducing costs and simplifying administration. The longstanding practice has forced many tenants of shared housing to pay disproportionately large council tax bills. These tenants could now stand to save up to £1,000 per annum on the cost of their accommodation.
Alongside this, the question mark over the practice and inconsistent application from one property to another, was impacting the financial viability of some HMOs and investment in the sector. As a consequence, there will likely now be a boost to investment in the sector, increasing supply and choice for prospective tenants.
Thank you!
The National Residential Landlords Association has claimed that their lobbying of government has resulted in this outcome, following a long-running campaign.
Ben Beadle, the association’s chief executive, says: “We are delighted that the government has listened to NRLA and others and will end the unjust practice of charging council tax on individual rooms.
However, as is often the case in the lettings industry there is more to this story than meets the eye, which on closer inspection highlights the ongoing – and often hidden -division amongst industry groups. Whilst the result itself is obviously a victory for HMO landlords, other groups have indicated that their hardwork – in addition to that of the NRLA – was instrumental in influencing the government’s decision. In addition, they claim that their work has gone largely unreported and unrecognised.
Specifically, the Council Tax Reform Group (a voluntary group chaired by Wendy Whittaker-Large) have worked tirelessly and often out of the public eye to lead this change. There are also many smaller groups and individual landlords up and down the country who have raised this with their local MPs and voiced their concerns.
So, whatever the reason for about turn by the government, let’s applaud the decision and recognise all the collective efforts by HMO landlords. Thank you to everyone for their contribution to this.
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