Bedford Borough Council has said the changes to HMO council tax collection will have a “minimal” impact on its income.
In accordance with the Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (England) Regulations 2023, houses in multiple occupation (HMO) will now be treated as a single dwelling for the purposes of council tax from 1 December 2023.
Bedford Borough Council said the council tax liability will rest with the landlords of HMOs covered by the regulations.
Asked if this change would have any impact on the council’s income, a spokesperson said: “We believe the overall impact will be minimal.
“For example where a HMO has been split into multiple dwellings it is likely that the occupiers of each dwelling will be claiming council tax support, which will cover the majority/whole council tax liability.
“These awards of council tax support will reduce the council tax base.
“As an example, the Valuation Office Agency may have previously bought a HMO into the council tax list as four Band A dwellings,” they said.
“If the liable party at each of these dwellings claimed 100 per cent council tax support the councils’ income from council tax would be zero.
“However, following the change in regulations the four individual dwellings would be treated from 1 December 2023 as a single Band D or Band E dwelling.
“The landlord, who is unable to claim council tax support, would also be liable for payment of the council tax,” they said.
The borough council does not determine if a property is a single dwelling or multiple dwellings for the purposes of council tax, this is the responsibility of the Valuation Office Agency.
by John Guinn
Local Democracy Reporter
