Make Landlords of HMOs pay Council Tax or Business Rates

Houses of multiple occupation (HMOs) are treated as domestic property and are subject to council tax. However, it is the owners of HMOs, not the residents, who are liable for council tax. The Government has no plans to make owners of HMOs liable for business rates. To do so would mean treating them differently from other domestic property.
Properties occupied solely by students, regardless of whether it is a HMO or not, are exempt from council tax. This exemption is designed to benefit students, not landlords, because, in general, students are not normally entitled to income related benefits such as housing and council tax benefit.
The distribution of formula grant to local authorities in England takes account of the circumstances of each authority's area and its relative ability to pay council tax, expressed in terms of the council tax base. The calculation of a council's tax base does take account of exempt student properties. Other things being equal, the smaller the council tax base of a council's area, the larger its formula grant. This effect is modified, however, by the application of grant "floors"; that is, a guaranteed minimum percentage increase in grant each year on a like-for-like basis."
Labels: Business, Council, Council Tax, HMOs, Housing, Planning Application, Students