Rates In Northern Ireland

G-Dog

Hi,

I'm looking to rent a one-bedroom house in Belfast, NI for the first time. However, I'm a bit confused about how rates charges work for rental properties. I've looked at the table on 'A Guide to Rates' on the NIDirect website (new user - can't post link).

According to this, any property with a capital value of under £150000 with rent being paid every month gives the responsibility of rates to the landlord.

For example, if the property I rent is worth £120000 and I pay £400/month, the landlord has to pay the rates.

In the above situation, will the landlord charge me an extra fee to make up for the rates or will they be covered by the monthly rent?

Any clarification would be appreciated.

Thanks

saverbuyer

It is highly unusual for tenants in Northern Ireland to pay rates themselves. The vast majority of rental prices are inclusive of rates.
That includes houses with a capital value above 150,000.


Northern Ireland has an abundance of rental properties. Belfast has an abundance of one beds. Competition for tenants means landlords can't get away with charging rates and rental prices usually reflect LHA rates.

Tansy_1980

This is actually a pretty complicated issue. There are a lot of tenants who get stiffed because their tenancy agreement and the law contradict each other. There's quite a bit of information about this on the housingadviceNI website - if you search Rates in Private tenancies on that site you should get the info you need. Can't post the link - sorry!

It's not that uncommon for tenants to pay rates themselves. Many will be given a ratepay card from LPS or will have their rates paid directly to Land & Property Services if they get housing benefit for rates.

Anyway, the law (Rates Order) says that tenants are legally responsible if the property is listed at 150,000 or above on the Capital Valuation List (which is on the dfpni website) or if the property is valued at between 55K and 150K and you pay rent less frequently than every month (so if you pay every 2 months or 6 months etc).

If your tenancy agreement says the landlord is responsible or that your rent includes rates but he or she doesn't pay these, Land & Property Services will prosecute you for any rates arrears if the Rates Order says you are responsible. If this happens, you'll have paid the Rates twice and will probably have to sue your landlord in Small Claims Court to get your money back. Nightmare!

So, you need to look at what the law says. If there's an arrear on the rates account LPS can only take legal action against whoever is responsible under the Rates Order, regardless of what your tenancy agreement says.

Definitely have a look at that website or phone Housing Rights Service if you're not sure how it works.