HMO COUNCIL TAX being changed on each room!

by Readers Question

7:39 AM, 15th August 2017
About 3 years ago

HMO COUNCIL TAX being changed on each room!

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HMO COUNCIL TAX being changed on each room!

Hi all, I have a bed HMO which consists of having all en-suites. I’ve been battling with the local Council reference council tax since obtaining planning permission and once fully finished. As all landlords know council tax is very expensive!!

The council classed the HMO rooms as “self contained”, however after having number of site visits and local planning enforcement on site valuation office classed the property as a HMO. Now Aug 2017 valuation office have wrote letters to all tenants stating they are liable for council tax and have billed me £14,000 due to seeing the plans before in 2014 and now they say there has been have been some ” alterations ” ( en-suite in rooms), which was done when planning was put in 2014.

The valuation office doesn’t know what they are doing after number of calls and messages they still not understand. Has anyone been thought this traumatic time ???

I await messages of how you overcame this situation.

Thanks

Rahul


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Comments

James Barnes

14:40 PM, 15th August 2017
About 3 years ago

Reply to the comment left by terry sullivan at 15/08/2017 - 13:12Students are exempt from paying Council Tax.

Marlena Topple

15:02 PM, 15th August 2017
About 3 years ago

For final year students, the period of time between the end of the course and the end of the tenancy is not covered by the student exemption. This can be up to three months in the case of 12 month tenancies.

Richard U

16:32 PM, 16th August 2017
About 3 years ago

Is this an unfashionable comment? Haven't you converted your single property into lots of individual bedsits? What is the difference between what you had done and a studio flat which would have to have council tax paid? 'http://nationalhmonetwork.com/what-is-an-hmo/

Harlequin Garden

16:41 PM, 16th August 2017
About 3 years ago

Well, they have no market value for one and council tax is based on a value. They are below the size for a formal 'studio' and basically a bedroom. Plumbing, heating and hot water on one system, gas and electrics on one system, the council recognise it as an HMO and I do all the checks needed for the license. Planning consent wouldn't be given for a formal carving up of one house to these units as popular as they are. Are you confusing bedsits with studios?

Lettings Agent Nationwide

16:40 PM, 18th August 2017
About 3 years ago

This doesn't surprise me as communication between government departments have traditionally never been good.
I have had this once on a property that I have (HMO) in Leicester and I manage properties all over England, however because I am a big business who will bring the "lawyers in" to any government organisation, and the fact I have experience in dealing with councils/regulators, within a few emails and phone calls, the updated the council tax statement.
For me it was easy however I understand small holdings or private one or two property landlords don't quite have the support structure that my company provides but always keep at them.

Colin McNulty

6:52 AM, 23rd August 2017
About 3 years ago

Was your case using the local council's Building Control department Brian?

Colin McNulty

6:56 AM, 23rd August 2017
About 3 years ago

Student HMOs are indeed exempt from council tax... for now! I'm expecting that to change in the next year or 2.

Marlena Topple

11:37 AM, 23rd August 2017
About 3 years ago

Colin have you seen or heard anything that indicates that student council tax exemption will be removed? Or is this speculation based on all of the other anti landlord measures. Thanks.

Jim S

11:39 AM, 27th August 2017
About 3 years ago

A silver lining could be that if they now charge council tax on each room then by default these rooms are now being classed by the council as separate units/flats and as such you can apply to get separate property leases drawn up by your solicitor AND SELL THEM EACH INDIVIDUALLY! You would never get planning for this normally but by default how can they refuse you.

Jay James

13:01 PM, 27th August 2017
About 3 years ago

Reply to the comment left by Colin McNulty at 23/08/2017 - 06:56
Why are you expecting that to change in the next year or two?

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