Homeowners about to be screwed again

bunking_off

Hmm...

I'm being naive, but I don't really understand how rebanding *in itself* will necessarily lead to us being spanked.

I seem to recall that the amount of council tax you pay is based on a +/- % formula from Band C (can't remember the specifics, but e.g. D is C+20% or similar). When the revaluations are done, the band definitions will probably be increased, but obviously house prices have gone up as well. Therefore, you might end up moving from say Band C to Band D. That doesn't mean that you'll *necessarily* pay more, however - because the total council budget is finite, if you've gone up to D your neighbours will have as well - in other words it's the same amount of money being divided between the same number of taxpayers hence in itself the revaluation won't change anything, UNLESS;

a) it's used as a cover to bump up council budgets or reduce central government funding overall - which of course it will be
b) you live in a property hotspot that's only become one since 1991 (?think that's when the last valuation was done)
c) property values have slumped in your particular locality or
d) you've dramatically extended your house.

On (d), does anyone know how these are being treated for the revaluation? Ordinarily, extensions "don't count" until a house changes hands, so e.g. if you build a conservatory they can't include it in the assessment of value, but if you do so then sell the house, they can visit and re-value. Does anyone know if the same applies for the global re-assessment of values?

westernpromise

Spendless wrote:

Not being a home-owner last time. How did they work out the values? Looking at a street? Or looking at the different types of houses? And from the inside or the outside?

I know several people who have extended over their drive adding more bedrooms to their property. Are they meant to inform the council then? Or do they carry on paying the same band as before?

Band A was for properties upto £40,000, surely this would be increased under a review?

They got local agents to drive past the property and guess how big it was. I paid £85k for a flat in 1988, the market crashed in '89, my neighbours sold up for £59k in 1990, and in 1991 the value was assessed as £88 to £120k! I.e. it had supposedly gone up!

Clearly this will be used to scr e w us all over again and is plainly unlinked to ability to pay. I mean, so what if your house has appreciated? I could not longer afford today to buy the flat I bought in 1998 so why exactly should I have to pay even more for it? Why not base the council tax on what you paid for it when last it changed hands?

The only thing you can do is pay close attention to which comparable houses in your immediate area are sold around the time of the revaluation. Note their exact address and house name, then invest £2 a pop in checking the sale price via the Land Registry online. If your place is overvalued, this at least gives you some ammo with which to refute overvaluations.

You can bet that properties will be overvalued in wards that historically vote against whichever party is in power locally. What council is going to penalise its own voters?

Murphy_The_Cat

Hi bunkingoff

after visting this site http://www.voa.gov.uk/council_tax/increases.htm
you will see that approx 1/4 of the way down it says "The only exception to this (increase in tax band due to improvements etc) is at times of revaluation when all bands are reviewed according to the physical characteristics of the dwelling on the valuation date whether or not ownership has changed"

so pucker up boys and girls, we're going to get shafted (unless of course you think Phony Tony wouldn't be so sneaky as to implement a tax increase on the sly. No, surely not The Right Rev Tony The Phony.)

MTC

Plasticman

In addition to the revaluing, the Lyons Review is looking at alternatives & additions to the Council Tax (local income tax etc). At the moment councils get most of their money from central government - council tax makes up around 25% to 40% (varies from council to council). The government want to change this so that a high proportion is raised locally.

If all of these changes happen at the same time it would be an ideal opportunity for a tax increase. Most people would be too confused to notice!