Section 257 HMO and Council Tax

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    Section 257 HMO and Council Tax

    I believe that under a shared-facility HMO situation, Council Tax is levied on the whole property.

    I'm thinking of buying a Section 257 HMO (a building converted to 4 self-contained studios that doesn't meet the relevant building standards).

    I'm being told it is paying 1 council tax bill for the whole property.

    Does that sound correct?

    No issue if it is paying £1,700/year but not so great if it is re-assessed at 4 x £1,300/year.

    Wondering what experience others have had with their councils


    #2
    The VOA is likely to chamge it to at least 4x band A at some point.

    You may also need an HMO licence if the Council have or introduce an Additional Licensing scheme.

    Comment


      #3
      Originally posted by Tony-Edwards View Post
      Does that sound correct?
      No, it is likely that the VOA simply don't know about it. Anything that brings it to the attention of the council may well result in a referral for revaluing.
      https://www.gov.uk/guidance/understa...ple-occupation
      • HMOs with little or no adaptation: Where minor adaptations like door locks are added, and the occupants of the separately let parts share the kitchen and bathroom of the original house, then the VOA can put the whole property into one band
      • HMOs with adapted letting rooms: Separately let rooms in a HMO may have been structurally and/or physically adapted, for example, so that they have their own kitchenette or separate shower/bath and WC. They will be given their own band even though may share some facilities. In making a decision, the VOA will look at all the facts, including whether the property has been structurally altered

      There is a place specifically for HMO questions
      https://forums.landlordzone.co.uk/fo...tion-questions

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