TL;DR
- In most HMOs let by the room, landlords pay Council Tax; joint tenancies may shift liability to tenants.
- Since December 2023, VOA aggregates HMOs into a single dwelling for banding.
- You can challenge your banding or liability via the VOA or Valuation Tribunal.
- Always check your tenancy agreement and ask Best Student Stays for HMO options with clear Council Tax terms.
Read Also: Understanding your Rights as a HMO Tenant in the UK
How Council Tax Liability Works in HMOs
Council Tax liability depends on how the HMO is let:
| Letting Type | Liability | Notes |
|---|---|---|
| Per-room lettings (bedsits) | Landlord | Single Council Tax bill for whole property → landlord pays |
| Joint tenancy (one lease for all) | Tenants (jointly) | Tenants share one bill and split cost |
| Section 257 HMO (up to 2 unrelated) | Follows standard rules | Tenancy hierarchy applies (first occupier, then others) |
- Disaggregation → Rebanding: Pre‑Dec 2023, VOA could “disaggregate” and band each room separately. Since 1 Dec 2023, all HMOs are aggregated into one dwelling (“rebanded”) meaning one Council Tax bill for the whole property.
Pre vs Post December 2023 Rules
Before Dec 2023, local authorities often valued bedsits as individual Band A dwellings (e.g., 5×Band A rather than one Band D) to increase revenue.
From 1 Dec 2023, statute law forces the VOA to treat HMOs as a single “dwellinghouse” for banding. This simplifies billing and clarifies liability:
- Aggregation: All rooms in an HMO now fall under one Council Tax band.
- Liability shift: Per-room landlords remain responsible; joint-tenancy tenants remain liable.
“This change ensures landlords can no longer push Council Tax onto students via room‑banding tricks.”
Challenging Your Council Tax Band or Liability
If you think you’re wrongly banded or liable:
- Check your VOA entry: Find your property on the Valuation Office website.
- Request rebanding: Write to your Local Valuation Officer with evidence (plans, tenancy agreement).
- Formal appeal: If no response in 4 months or refusal, appeal to the Valuation Tribunal under s.16 Local Government Finance Act 1992.
Key deadlines:
- Six months to challenge a banding change.
- Two months to appeal a rejected liability complaint.
What Students Should Watch For
- Read your tenancy: Ensure it clearly states who pays Council Tax.
- Verify licence type: Best Student Stays lists licensed HMOs landlord‑liable for tax and compliant with safety rules.
- Joint vs room lets: Know which arrangement you’re signing.
- Budget accordingly: If on a joint tenancy, split the Council Tax bill (Band D in London ≈ £1,900 / year).
Read Also: HMO Living Tips for International Students in the UK
Case Study: Sharing in Sheffield
Scenario: Four students sign one joint Assured Shorthold Tenancy (AST) in Sheffield.
Outcome: They received a single Band C Council Tax bill (~£1,400/yr). They set up a cost‑split: £350 each.
Tip: They negotiated with the landlord to include Council Tax in rent from year 2—saving time and disputes.
Extra Tips & Resources
- Disaggregation holdover: If your HMO remains disaggregated by mistake, ask VOA to “reaggregate”.
- Empty rooms: Landlords can’t claim empty‑home exemptions on per‑room lets.
- Exemptions: Full‑time students are exempt but only if the whole property is a student HMO.
- Local advice: Contact Student Union or Citizens Advice for free support.
Conclusion
Understanding Council Tax HMOs UK is vital for every student. Post December 2023 aggregation makes the system simpler, but you still must:
- Check your letting type
- Read your contract
- Challenge misbanding promptly
At Best Student Stays, we list HMOs with transparent Council Tax terms so you can focus on your studies, not your bills.
Published July 2025 on Best Student Stays – Your trusted student housing marketplace.
