Council tax and studio flats?

So what's your involvement in this Jonathon?

I can only say that 'I did' - my little studios were clobbered by council tax - low rent rooms (because I choose it that way, I like my regular working tenants) all in good condition before anyone thinks otherwise and then suddenly they had a £100 put on top of their very reasonable rent - the HMO department disagree with this as we are crying out for low cost housing for low paid workers (I don't do dss or whatever it is called) and the council want 10x the council tax but won't carry out 10x the service (still same number of bins, same garden bags etc). there wasn't enough in the rent for me to pay their council tax, I reduced the rent a little at the start and. gradually did increases that i only do for a new tenancy.
The council tax is in the tenant's name surely? When they did mine they wanted the name of the tenant (took my word, didn't check by TA) and when they moved in - they did back date as they were so slow to issue the bills so I did pay that as there was no way the tenants could pay 4 months back council tax.
So bottom line, in tenants' names so tenants' responsibility, you can help them out. I wasn't asked for the planning status of my little studios - I did eventually apply for Lawful development but another property I owned was an HMO because one or two had their own showers I had the 'swoop' and all were captured, no inspection - so again they took thousands extra from the tenants. I didn't ever change it's status as it was a confirmed HMO - sold it in the end, so much hassle when tenants move out and you get stuck with the bills between tenancies.

Sorry a bit or a rant - it's obscene that a tenant pays council tax for a something that has no singular value (you can't sell it) and there isn't a special band for it - I've made the call to councillors and MPs for this but nothing came of it even though all believe it to be wrong (and surprising number of councillors didn't know that studios in a house pay council tax, thought I'd got it wrong)

Reply to the comment left by Elizabeth Bax at 23/08/2023 - 10:14
Unfortunately the local authorities impose this on many - I would appeal if I were you.

It would seem that they are happy to take the word of tenants when they say they have vacated and do not check any documents, with council tax then reverting back to being the owner's liability.

Sorry - I should have said that the landlord in question is one for whom we have acted for many years as his managing agents however about two years ago, he took all his properties back purely to save the management fee and has since tried to manage them himself. We still have a good relationship and hope to get the properties back when he realises that self-managing 28 properties is a job for professionals. English is not his first language which is why I have posed the issue on his behalf.

So it looks like there's no way to have the 4 seprate council tax accounts merged into a single account covering the whole house and that even while waiting for the LDC, he should stop paying the tax himself and devolve it to the individual tenants. Is this the general advice?

Reply to the comment left by Jonathan at 23/08/2023 - 23:40
To go back to one property you will have to appeal and prove the original valuation is wrong - if these units are independent, a tenant can carry out all functions in one space - bathroom, kitchen and sleeping/living then it is a qualifier for individual council tax and they will do it by size of space. It's a rabbit hole I went down 10 or so years ago. They don't even have to carry out a visit to each 'room'. valuations are by Inland revenue not the LA.
The council tax is on the unit so my advise for what it's worth would be to give it to the tenant (although it is an expense if you pay it all - it is likely to be very considerably more than the council tax for one property - mine went from £2000 to £12,000). Eventually the tenant will get used to it and try and stay out of left wing councils as the tenant is always right and council tax always high. You do have to be very organised (as you are a lettings agency I assume you will be) and inform as soon as a tenant leaves and have the new one move in and be able to prove the end date - but if there is a gap then it's to you even though it is empty and a single person would get the 25% discount. Yet more landlord bashing sadly. If one tenant moves out and another in the next day we would see that as win win - the council tax people want a day's council tax. They have automatic chase up - computer says you owe so they will be relentless, even if one tenant didn't tell them they'd gone and a new one is in place and paying they will still chase the outgoing one and.you get piles of post, court orders and judgements and knocks on door for the late tenant - even though council tax is being paid and no arrears - it is a 'computer says' system at work. Dreadful system.
As an aside I 'self manage' 17 properties 3 being multi occupied so 25 tenancies in those, management fees of Central London rent at 8% is a very large chunk and I do it as a job not a hobby. Paperwork is horrendous as we are now acting as border control as well as Landlords and all that that brings.

My opinion to your question is 'yes' and as a managing agent I'm surprised you are asking this question.

Slightly different scenario but my elderly Aunt who rents in a retirement home has to pay council tax. I challenged that but it was deemed correct. All 128 residents paid unless they were on benefits and were exempt. My Aunt's place not far short of a bed sit so can't think you'll get much change on anything other than someone paying the charge.

So the issue at the moment is presumably that the Council regard the building as a single HMO let on multiple ASTs, for which the landlord would be liable for the Council Tax. I dont think that the landlord could escape that liability, so if the tenants agreed to pay and then didn't, there would be nothing he could do.
Why isn't the landlord charging an inclusive rent if this has been the historic set-up? Is there anything stopping him putting the rent up now to cover the costs?

Reply to the comment left by David at 24/08/2023 - 11:03
The way I understood and answered was that it had been a house, converted to individual units at some point and one council tax for the whole property being paid - the conversion done some time ago as he is applying for lawful use. How the tenants paid prior to this is unknown but looks as though it was an unauthorised change and the landlord paying for the place as a house - now regularising the use. If it has been valued for individual council tax then he should put it in the tenants' names separately - he/she is liable if the units are empty but whilst tenanted he should pass it on. He can give the tenants' details to the council - then if they don't pay it's not his problem (it is if they leave).

Reply to the comment left by Elizabeth Bax at 26/08/2023 - 10:01
Yes, thats also how I read it, but currently and until the Council recognise the conversion, I think they may regard the property as a single HMO with individual room-only tenancies, which under Council Tax law makes the landlord liable for the CT.