HMO Council Tax win as government may scrap disaggregation

The government has launched the consultation on the controversial subject of disaggregation - a system which has seen council tax bills soar for HMO landlords.

Disaggregation is when the government’s Valuation Office splits an HMO into single units for council tax purposes, typically triggering a huge rise in council tax for HMO-owning landlords. There were few opportunities for review or appeal by landlords hit by the process.

Campaigners such as the HMO Council Tax Reform Group and trade bodies such as the National Residential Landlords Association have lobbied the government on the issue and the Department of Levelling Up, Housing and Communities has responded with a consultation.

The consultation proposes amendments to the council tax regulations via two options, each of which will see HMOs taxed as a single dwelling for council tax purposes with exceptions only for properties physically split into distinct self-contained units.

NRLA chief executive Ben Beadle says: “I was delighted to hear the government has listened to what we had to say on disaggregation and has mooted plans to end this unfair practice for good. HMO landlords, especially those with more than one property, have seen council tax bill skyrocket through no fault of their own. 

“This is turn leaves them with little option but to increase rents at a time when the cost-of-living crisis is biting across the board. I would encourage members to respond to this consultation to protect both landlords and tenants, and scrap this unjust system for good.”

And Daryn Brewer - managing director of houseshare company Prop Pods, leading the Reform Group lobbying for change - adds: “It’s been a real battle to get this far and there have been a lot of people lobbying to get minsters to see that this is an unfair way of taxing tenants who reside in HMOs. We now need as many tenants and landlords as possible to complete the consultation and submit their responses.”

The consultation closes on March 23 and you can see it here.

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.