The government has announced it will end the practice of banding individual rooms in shared houses separately for council tax purposes.
This is set to stop tenants living in HMOs having to foot large council tax bills.
Following a campaign by the National Residential Landlords Association (NRLA), the decision will mean HMOs will be classed as a single property, reducing costs, and simplifying administration.
This will be achieved through amendments to existing legislation, including the Council Tax (Chargeable Dwellings) Order 1992 and related regulations.
These amendments to legislation will apply to all HMOs (including both licensed and unlicensed).
The NRLA has estimated that the average HMO tenant currently charged council tax on a single room stands to save up to £1,000 a year.
Ben Beadle, CEO at the NRLA, commented: “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, but 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.”
