Renters in shared housing stand to save up to £1,000 – and the National Residential Landlords Association says it is the reason.

The government has announced it will end the practice of banding individual rooms in shared houses separately for council tax purposes, ending the practice of forcing tenants of shared housing to foot large council tax bills.

Following a long-running campaign by the NRLA, the decision will mean houses of multiple occupation will be classed as a single property, reducing costs and simplifying administration.

As a result of this announcement the NRLA estimates that the average HMO tenant currently charged council tax on single rooms stands to save up to £1,000 a year.

Ben Beadle, the association’s chief executive, says: “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.”