Landlords win battle over HMO Council Tax

Posted in November 2023

Following a consultation held by the Department for Levelling up, Housing & Communities, the Government has accepted the case from landlord leaders that the current council tax rules for HMOs (houses of multiple occupation) are unfair.

Landlords win battle over HMO Council Tax

The Government has agreed with property industry leaders, that the current council tax system for HMO houses was unjust .  This now means that Renters in shared homes could save up to £1,000 each in council tax.

Propertymark and the National Residential Landlords Association (NRLA) had both argued that it was wrong that individual tenants in HMO houses had to pay council tax.

The Government have therefore announced that it will be ending the unfair and unpopular practice of banding individual rooms in shared houses separately, for the purposes of council tax, following a consultation with the property sector earlier in the year. 

This decision will be brought into effect by the end of 2023, meaning that from then onwards, HMOs will be classified as a single property for council tax purposes.  The NRLA estimates that this will in turn save the average HMO tenant the considerable amount of up to £1,000 per year.

The CEO at NRLA, Ben Beadle said “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.

“Not only will it save tenants money, it means landlords will once again be able to let rooms inclusive of council tax, making it easier for renters to budget.

“We look forward to the necessary changes being implemented without delay.”

The Government stated that an overwhelming number of respondents to its consultation said the current system was unfair, and furthermore, there was “broad support” for its proposal to make one council tax charge for each HMO property.

“The amendment to legislation will ensure that HMOs will be valued as a single property, creating consistency in the sector, and provide certainty for councils and households moving forward,” the Department for Levelling Up, Housing and Communities says.

“This should also help ease administrative burdens for councils as the council tax liability should remain with the landlord in the usual way, rather than moving to individual tenants who may only occupy the property for a short period of time.”

For further information on this amended legislation and how it might affect you or your tenants, please contact our Property Management Office on Tel: 020 7354 9222 at 235 Blackstock Road, London N5 2LL, or email   

Latest posts

Free property valuation

With three local offices we have unrivalled market knowledge. A senior member of the David Andrew team will come to your property to provide an accurate sales valuation or rental valuation and offer comparable properties we have sold in order to justify our valuation and to show how we can achieve you the best possible price.

Register with us

Register today to receive instant alerts when we add properties that match your requirements.