Council tax banding of multi-occupied properties e.g. houses converted to bedsits

Council tax is a local tax to pay for local services. The basic principle is that each household should contribute towards the cost of local services according to the value of the property that they occupy.

In general, living space occupied exclusively by a separate household within a larger multi-occupied property usually has its own council tax band. This is the case even where the residents share some facilities and the living space is not entirely self-contained.

In some circumstances a property occupied by one household may be allocated more than one band because it has more than one self-contained unit e.g. a house with an annexe to accommodate an elderly relative will have its own council tax band separate from the main house. This is known as Disaggregation. For more information see banding of properties with more than one self-contained unit.

In exceptional cases a single council tax band may be allocated to the whole property, rather than each of the individual living spaces. This is known as Aggregation.

The treatment for council tax of houses in multiple occupation can be difficult to understand so we have set out the most common situations along with some examples to illustrate how the bands are allocated.

Houses (or other buildings) split into flats or bedsits

Student halls of residence , Hostels, Boarding accommodation

Registered Care homes

Houses (or other buildings) split into flats or bedsits

In general, individual flats or bedsits will be allocated their own council tax band, even though some of the facilities and accommodation may be shared with other residents of the same building. A separate band means a separate council tax bill for the occupants. See ‘Paying the bill'

Example: A converted house comprising four bedsits, each separately occupied and with washing and toilet facilities but sharing a kitchen, would normally have four separate council tax bands.

Example: A large Victorian house where bathroom and kitchen facilities are shared between seven tenants occupying the bedrooms on a month-to-month license, with the only adaptation being individual locks on each bedroom door. The VOA is likely to exercise its discretion to apply one council tax band to the whole property.

Example: A purpose-built block of ten one-room flats each with kitchenette and shower/WC on short term lets would have ten separate bands, as each flat is a self-contained unit.

Student halls of residence; Hostels; Boarding accommodation in schools and barracks

Property shared by a number of people living as one household, for instance students sharing a house, or a hostel where the residents live communally, will usually have one band . This includes hostels known as “foyers,” which offer support for young people who are homeless.

However, in some cases where the property consists of more than one self-contained unit, then more than one council tax band will be allocated.

Example: A hostel with a canteen and laundry room for all residents but with living accommodation arranged on three floors, each with bathroom/WC and kitchenette, would be assessed as three self-contained units (one per floor) so the hostel would have three separate council tax bands.

Example: A student hall of residence providing bed-sit accommodation with shared bathroom and washing facilities, one refectory and no individual cooking facilities will have a single band as the property is classed as comprising only one self-contained unit.

Registered Care homes

Care homes for the elderly or disabled that are registered under Part 2 of the Cares Standards Act 2000 will have a single council tax band except for any self contained unit(s) occupied by the registered person responsible for running the care home.

Other care homes, or units whose occupants receive certified domiciliary care only are dealt with under the same rules applied to hostels.

Discretionary exception

In very exceptional circumstances, a single council tax band may be allocated to a property occupied by more than one household. Having a single band is a discretionary decision of the Valuation Office Agency's Listing Officer depending on the following factors:

• The extent that the property has been altered to provide separate areas of living accommodation
  The greater the adaptation to make each part a self-contained living space, the less likely it is to have only one council tax band.
• The frequency of tenant turnover
  A regular turnover of short-term tenancies in a property that has not been adapted into separate units of living accommodation is likely to mean that a single band is allocated to the whole building. However if the building has been adapted to comprise individual self-contained units, then each unit will have its own band, regardless of the tenancy turnover.

Paying the bill

Your local council works out and issues a separate council tax bill for every self-contained unit within one property, as well as applying relevant discounts or exemptions and collecting payments. In most cases it is the occupier who is liable for payment. Payment arrangements can vary for properties with multiple occupants and your local council should be able to advise who is responsible for paying. For any queries about the bill or payments, contact your local council – their details will be on your council tax bill or in the local telephone directory

Further information

You may find it helpful to read our council tax manual, in particular practice note 6, which deals with property in multiple occupation and practice note 5 which covers the banding of self-contained units within one household.

The manual can be accessed from our publications page.

If you have a specific query about your circumstances, which hasn’t been covered here, please contact your local Valuation Office and speak to dedicated staff, who can answer your questions.