How does Council Tax work for an HMO?

What counts as an HMO for Council Tax

HMO stands for house in multiple occupation. For Council Tax, the government uses the same meaning as the Housing Act 2004. In simple terms, it is a home rented by at least 3 people who are not from one household (not one family), and who share things like a kitchen or bathroom.

Self-contained flats in a converted building are treated differently. They are left out of the HMO rules, so each flat keeps its own Council Tax band.

One band for the whole house

The Valuation Office Agency (VOA) sets Council Tax bands in England and Wales. It now values most HMOs as one single property with one band. It has done this:

Before this, some HMOs had a separate band for each room. That meant several Council Tax bills for one house. The government said HMOs should be treated as one property "other than in exceptional circumstances".

Who pays the bill

The owner (usually the landlord) pays the Council Tax for an HMO, not the tenants. When it changed the rules in England, the government said liability should stay with the HMO landlord and tenants should not get their own separate Council Tax bills.

If your HMO still has a band for each room

If you own an HMO that is not yet valued as a single property, you can tell the VOA by filling in its HMO proposal form. The VOA guidance on how bands are assessed links to the form.

Check first that the property is really an HMO. If it is a block of self-contained flats, each flat should still have its own band.

Things to know

• The rules apply in England and Wales. Council Tax bands in England are based on values on 1 April 1991. In Wales they are based on 1 April 2003.
• The owner can apply for any discount or exemption the council offers. Discounts are never automatic.
• If you are struggling to pay, contact your council early. They can sometimes spread payments over 12 months instead of 10.

If you live in Scotland or Northern Ireland

Scotland has its own Council Tax system. Bands there are checked through the Scottish Assessors Association, not the VOA, so contact your local council about an HMO. Northern Ireland does not have Council Tax. Homes pay domestic rates instead, run by Land & Property Services.

Related guides

• Do I need an HMO licence?
• Who pays council tax?
• How do I check my Council Tax band?
• Who is exempt from Council Tax?
• Do students pay Council Tax?

Where this comes from

• How domestic properties are assessed for Council Tax bands (Valuation Office Agency)
• Council tax valuation of HMOs: government response (GOV.UK)
• The Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (England) Regulations 2023 (legislation.gov.uk)
• Council Tax: paying your bill (GOV.UK)
• How rate bills are calculated (nidirect)