Rateable Value Figure

Archie_G

I know the rateable value issue is well discussed and I understand the concept but if I can just ask a simple question please. On my water bill the figure given for my rateable value is 81. Can someone give me an idea of what that figure stands for in real money ie what was the actual rateable value of my house in pounds?
Thank you.

Cardew

Welcome to the forum.


The Rateable Value(RV) of your house is £81. This was the value when it was last assessed which could have been over 40 years ago. This value was the basis of the 'local taxes'(Rates) you would have paid until April 1990. It was replaced with the Poll Tax and then the current Council Tax; albeit there is no connection between RV and Council Tax.


Now the water company will charge a rate per £1 of your RV. So if you look at your company's website it will give the rates.


For example it could charge, say 120pence per £1 for water and 150pence per £1 for sewerage. If this example was the case you would pay an annual charge of 81 x 120p + 81 x 150p = £218.70p


Depending on your water company there could be additional charges - mainly for Surface water Drainage(SWD)

Archie_G

Thanks very much, Cardew, that's really helpful.

The issue I've got is that I live in a one up, one down lodge and next door to me is another lodge of equal size. When the assessment of £81 was reached both lodges were a single dwelling - the family of five lived in one and slept in the other. However, in 1993 when Me and my neighbour moved in (they are rented property, by the way), the two lodges had been split into single dwellings, hence I live at number 1 and my neighbour is number 2. However, I have continued to be charged at the £81 rv and I have found out recently that my neighbour has not paid any water rates at all.

I think the water company have been viewing the property as one dwelling and billing me accordingly and so in effect I've been paying for my neighbour's water. Am I understanding this correctly? And if so, what would be your advice please?

Cardew

Yes you are understanding it correctly.


When the property was divided each one should have had a water meter fitted - or a new RV assessed for each if it was divided before April 1990.


It apparently happens quite a bit when large house are divided into flats; and is of course 'illegal'. Any major modification to the purpose or structure should be notified to water companies.


Was the property divided 'officially' i.e. planning permission and each property paying Council Tax? How about separate electricity/gas?


If you want to carry on with this 'unofficial' arrangement you need to come to an understanding! with your neighbour!


If you report it to the water company, next door will have a meter fitted and probably back billing for the last 6 years. You might be allowed to keep RV billing, but more likely you also will have a meter.


It is important to note that there can be no alteration to the RV, or an RV given to your neighbour.


The difficulty you face is that an RV of £81 is low and a meter will probably cost more in annual charges. You can check by going to the water company's website and look up metered charges(allow 50 cubic meters per person per year)

Archie_G

Thank you once again, Cardew.
I'm currently looking into the background to all this with both my landlord and the water company but I just wanted to be sure that I was understanding it correctly.
As to the cost of my bills, I don't have mains sewerage so I just pay for water and the water company have told me that, based on a usage of 50 cubic metres per year, if I had a water meter, my bill would be approx £60 cheaper than I'm paying now. They also have an arrangement where if it turns out more expensive on a meter, I can reverse back to a rv charges if I do so within two years.
So it would seem that I've got nothing to lose and could possibly gain.
As to the past 23 years of over paying, I shall pursue it......