Ordinary 4 bed flat but with HMO Licence?

Ordinary 4 bed flat but with HMO Licence?

by Readers Question

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17:05 PM, 28th July 2016, About 8 years ago 2

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I bought a derelict flat next to West of Scotland university in Paisley (it had been empty for a number of years ) and I converted it to a 4bed flat.council tax

Initially the assessor gave it a council tax banding of Band C which is OK to this point.

The HMO Licence was granted the assessor then came back banding each of the 4 rooms individually in band A category, so effectively getting 4 council tax payments from one property!

The flat is rented on a single short assured tenancy.

Has anyone came across this situation or has any experience in such matters?

I have appealed.

Many thanks


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11:14 AM, 29th July 2016, About 8 years ago

I have an HMO that has had showers fitted in each room to go with the already installed little kitchens so now told that I have to have them banded for council tax separately as they are now self contained and do not qualify for HMO licensing any more - you are Scotland though so the rules may be different.

My HMO officer has told me to appeal this with the valuation people because the whole point of HMO is for affordable housing - with a chunk of council tax slapped on it isn't viable of the landlord (probably have to reduce rent) or affordable for the tenant. Apparently he will support me if I put in a shared kitchen.

Kate Mellor

16:12 PM, 29th July 2016, About 8 years ago

Hi, I don't know about Scotland, but in England & Wales HMOs tend to be split into separately let dwellings for CT purposes. As yours is let on a single tenancy you could very well successfully argue that the property should be on a single banding.

Generally in your type of case the Valuation Office Agency will look at the degree to which each room has been structurally altered.

My reading of this is that you could challenge the decision with the VOA based on the proof that the tenants are under a single tenancy agreement and that they share more facilities than are separate, such as the kitchen, full bathroom (?), lounge/TV room etc.

Especially if your tenants know each other and came to you as a group to let the property as a whole & you clarify that it is your intention not to let rooms on individual tenancies, but to allow groups of unrelated individuals to share, which is the only reason you applied for a HMO licence, (assuming this is the case).

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