Appealing valuation from single to five dwellings?
We have a small HMO of 5 rooms in Stoke-On-Trent. Recently the Valuation Office has brought our property in as 5 separate hereditaments. The property has been regarded as a single dwelling until 5 months ago, with a tax for the entire property, now 5 times higher.
We have got the HMO license, but 3 out of 5 rooms are on the verge of what can be approved (10m2). 2 rooms are slightly larger about 13m2 and 18m2. All rooms have a minimal en-suite and a small fridge, but no possibility to cook. We have had a hard time renting out due to reduced demand and small rooms and a small shared kitchen. We have had an occupancy of about 3.5 people over time in 5 rooms. The tax must be paid regardless of whether we have tenants, they say. The house has a value of approximately £85,000.
The valuation office made the change without contacting or notifying us, so we had no opportunity to question or give our opinion. We have tried to make contact with them to discuss whether it is reasonable. The Council does not want to discuss or show us the basis for the assessment. They do not allow us to talk to the person responsible. We have submitted, by email, an appeal. They refuse to answer if it is accepted as formally correct, although I have emailed and asked 3 times.
Does anyone have any similar experience or advice on what we can do? Any idea if we have a chance to have our appeal approved?
Ulf
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Member Since May 2014 - Comments: 271 - Articles: 2
10:31 AM, 21st December 2020, About 5 years ago
Reply to the comment left by bfitz at 21/12/2020 – 07:49
When I went through this with one HMO that was banded I spoke to my very friendly private housing man who dealt with HMO licenses and he said that removing the kitchens (small all in one units, no cooker, just microwave) and having one common area (so giving up a room) wouldn’t work, I’d have to have other communal areas so also take out some of the shower rooms too. I just had to accept it in the end and to lessen the blow I did reduce the rent and give them a few wifi routers on separate systems and I have to say that they stayed and got used to the increase. The pain was the paperwork when the tenants moved with informing of the new tenant (they rarely do) and having to mop up the few days or weeks break – they council tax department is only geared up for sending out demands they do not work with a brain so it became an absolute nightmare at times with them getting confused by the numbers and very similar addresses – I’ve sold it now and this was partly the reason, it became an admin nightmare.
I have brought this up with MPs (mine and for the area the building is in) and suggested that they had a ‘special’ rate for HMOs as it isn’t really fair that they are under the umbrella of one house – but also they shouldn’t be paying the same as a small flat for what is essentially an ensuite bedroom. We did have this system that so many people protested about – the Community Charge – hmm whatever happened to that…. would have worked well in this situation.
Trouble is tenants now don’t want to share – we’ve move on from grotty bedsits and sharing – and we have to move with the market, sadly the council departments are not with us in modern times.
What did you put on your last application for your HMO license?
Member Since November 2020 - Comments: 3
10:44 AM, 21st December 2020, About 5 years ago
Reply to the comment left by Harlequin Garden at 21/12/2020 – 10:31
I anticipated that the admin would be a nightmare.
It is such a shame to have to give up something you have worked so hard for.
It seems any house with more than one bathroom and more than one tenant could be rebanded by bedroom according to the 1967 Act, which is obviously nonsense. The VOAs have far too much power.
I do not understand your question “What did you put on your last application for your HMO license?” – I do not think any of this is to do with my HMO license app. The house was banded as 2 flats. When I explained that this was a single house I think this is when the VOA might have started their action.
We seem to be completely unprotected in this, and the VOAs are far too protected.
Member Since May 2014 - Comments: 271 - Articles: 2
10:59 AM, 21st December 2020, About 5 years ago
Reply to the comment left by bfitz at 21/12/2020 – 10:44
If you put that all the rooms had ensuites then it would have flagged that this was not an HMO as there has to be an element of sharing. We are told that there is a shortage of good quality low cost housing which HMO’s can provide and then this happens.
It’s a very unfair system and the private rental system is very unfair to the landlord where the tenant is living in better conditions and has more protection than the landlord and his/her family. It’s all going the wrong way I fear and I’ll be moving out of it
Member Since November 2020 - Comments: 3
11:31 AM, 21st December 2020, About 5 years ago
I think that we all as LLs need to band together and lobby government. Any time you mention this on a public forum you get asked the question which area. If we do not do something about it it will be coming to an area near you soon!
The liability for the CT goes to the tenant (so they will have increased costs) although we will obviously have to reduce rent to compensate them.
It is definitely not a fair system