The Residential Landlords Association (RLA) is calling on Ministers to end the “scandal “of local authorities charging council tax on bedsit accommodation.
A new report published today by the All Party Parliamentary Group for the Private Rented Sector has heard that many young people renting a room in a shared house are being stung for significant amounts of money by local authorities.
Guidance from the Valuation Office Agency means that many local authorities are now classing a single bedroom in a shared house as a separate dwelling for council tax, rather than the house as a whole.
By doing so, councils are able to claim funds under the Government’s New Homes Bonus scheme despite no new property having actually been created.
The RLA is calling a 50% discount on council taxes for rooms in shared homes in line with a similar discount introduced for so called ‘granny annexes.’
Commenting on the issue, RLA chairman Alan Ward said: “When young people are facing difficulties making ends meet, it is scandalous that some local authorities are applying full council tax bands to single bedrooms in shared homes, whilst using this to claim New Homes Bonus on homes that aren’t new.
“It’s time the Government stepped into to end this gross unfairness.”
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Comments
The RLA are not helping the situation by advocating a 50% discount on an unjustified tax.
All that will happen if this form of taxation is introduced is that tenants will pay more! How is that helping the housing shortage or the acknowledged high costs of renting in London especially? It certainly won't hit the landlord and nor should it!
Yours,
Amazed of London
This is a scandal and the RLA are useless. How dare they volunteer our money to the council. We should not be charged at all on a room by room basis, this is theft by the local authorities against landlords, a group who are the butt of a hate campaign by the media, politicians and the local authorities who are bullying landlords en masse. I object to the RLA and all supposed landlord groups who only serve themselves not the landlord.
I have a shared house requiring total renovation after bad tenants. I'm being charged 150% council tax on a property without a toilet or sink (a shell).
Coventry council have taken charges to the limit..
If I insultate the property with insulated platsterboard Coventry building regs want £150. per room. If i add a ensuite toilets Coventry building regs wants £150 per ensuite.
We all critise the banks (PPI) for ripping off people.. I want the same applied to councils.
My only payback to the council is I will NOT rent to unemployed or single mothers.. Only working families