How often can council tax be reviewed

matohak

I am currently planning to get a mortgage and buy a 3 bed house. After getting the mortgage I am going to quit my job and do a full time phd (while residing in the same house). The mortgage will be funded by scholarship and rental income from the other rooms.

I'd like to restrict renting out to full time students only - to avoid paying council tax. However, at the moment I'm not sure if it'll be easy to find long term (~1 year) tenants.

If I rent out a room temporarily to non-students for only a few months, do I have to pay council tax for the whole year? Does anyone know how often can the council tax status of a house be reviewed?

Guest101

matohak wrote: »

I am currently planning to get a mortgage and buy a 3 bed house. After getting the mortgage I am going to quit my job and do a full time phd (while residing in the same house). The mortgage will be funded by scholarship and rental income from the other rooms.

I'd like to restrict renting out to full time students only - to avoid paying council tax. However, at the moment I'm not sure if it'll be easy to find long term (~1 year) tenants.

If I rent out a room temporarily to non-students for only a few months, do I have to pay council tax for the whole year? Does anyone know how often can the council tax status of a house be reviewed?

You tell them when there is tax payable and then tell them when it stops being payable.


I'd be more concerned to intend to fund yourself from non existent lodgers


what happens if they leave and you don't get a replacement?

davidmcn

It's calculated on a daily basis, so you tell them every time the circumstances of the residents change.

matohak

Thanks, I have enough buffer to keep up with mortgage payment for more than a year even without any tenants living in the house

CIS

As pointed out just make sure you keep them informed and provide the details (and current status) of any occupiers and the council will sort it for you without any major issues.

If you have non-students in the property then the maximum council tax discount you will receive will be 25%.

Craig

teddysmum

Is it possible that the mortgage provider could foreclose (I the house would need to be sold) if they found out that the job income ceased (and not because of unforeseeable misfortune, like redundancy or illness) ? (I'm not suggesting that this would happen, but wonder whether it could.)

matohak

the lender can't really prove my intention to quit my job can they?
Surely as long as I keep up with mortgage payments it'll be fine?

Silvertabby

You mention rental income from the other 'rooms' plural. Wouldn't this put you into the realms of HMO and all the regulations that entails?

CIS

Silvertabby wrote: »

You mention rental income from the other 'rooms' plural. Wouldn't this put you into the realms of HMO and all the regulations that entails?

It may be a HMO for licensing purposes depending on the number of occupiers etc - always worth checking with the local authority for any local restrictions so as to not end up with a substantial fine.

Craig

matohak

Thanks for the reminder. I'm only renting out two rooms. On my council's website it says:

"Resident (live in) Landlords
A resident Landlord (owner) and family may share a house with one or two unrelated lodgers without the need for an HMO Licence. A third lodger means the house is an HMO and it must be licensed."

So I'll be ok without an HMO.

https(colonslashslash)www(dot)oxford(dot)gov(dot)uk/info/20237/properties_that_need_an_hmo_licence/929/hmo_criteria_definitions_exemptions_and_special_cases