Council Tax: Living with students

al3lmrsh

I currently live in a house with 5 university students and as I am the only non student therefore I am liable for the whole council tax bill (I dropped out of the university and couldn't be released from my tenancy). I receive the 25% discount for living with students and I am in the process of applying for a reduction because of low income but I was talking to someone recently who used to work for the council and they said that I should only be paying 1/6th of the bill not the whole house's worth. I'm not sure how accurate this is as nothing has been said when I've spoken to the council before but I just thought I'd check? I've also been told that if I move out before my contract has ended I'll still be liable for the CT on the property and wanted to check this too. 
Thank you

es5595

So, if there’s seven of you in a house, it’s a HMO so the landlord should be paying. Does it mention this in your contract? If not, let the council know it’s a HMO, and give them the landlords details!

Comms69

al3lmrsh said:

I currently live in a house with 5 university students and as I am the only non student therefore I am liable for the whole council tax bill (I dropped out of the university and couldn't be released from my tenancy). I receive the 25% discount for living with students and I am in the process of applying for a reduction because of low income but I was talking to someone recently who used to work for the council and they said that I should only be paying 1/6th of the bill not the whole house's worth. I'm not sure how accurate this is as nothing has been said when I've spoken to the council before but I just thought I'd check? I've also been told that if I move out before my contract has ended I'll still be liable for the CT on the property and wanted to check this too. 
Thank you

Technically you'd be liable for the full (75%) of the council tax. 

But this property is a HMO in every possible sense; and therefore the landlord is liable.

(you may be liable to the landlord however by virtue of contract)

al3lmrsh

es5595 said:

So, if there’s seven of you in a house, it’s a HMO so the landlord should be paying. Does it mention this in your contract? If not, let the council know it’s a HMO, and give them the landlords details!

I just contacted my local council and apparently this is true with the only exception being student housing so I'm still liable unfortunately. Thanks for your help anyway!

Comms69

al3lmrsh said:

es5595 said:

So, if there’s seven of you in a house, it’s a HMO so the landlord should be paying. Does it mention this in your contract? If not, let the council know it’s a HMO, and give them the landlords details!

I just contacted my local council and apparently this is true with the only exception being student housing so I'm still liable unfortunately. Thanks for your help anyway!

Please share which council this is, they must have a published HMO licence scheme

unforeseen

 I was talking to someone recently who used to work for the council and they said that I should only be paying 1/6th of the bill not the whole house's worth

With advice like that you can see why they no longer work for the council

oldbikebloke

al3lmrsh said:
I just contacted my local council and apparently this is true with the only exception being student housing so I'm still liable unfortunately. Thanks for your help anyway!

something got lost in translation when you contacted the council then because the definition of HMO for council tax purposes is set in stone in law and you do not appear to be living in a university owned halls of residence (which is the only form of student accommodation that is wholesale exempt)

what you describe falls into the legal definition of a council tax HMO and therefore makes the landlord the ONLY person who is legally liable to pay CT

(as mentioned above, your tenancy agreement with your LL may make it a contractual matter between you and the LL that "you" pay the CT, but you must not do so direct to the council, since legally you are not liable. You would have to pay the money to the LL, and the LL pays the council to clear their liability)

https://www.northampton.gov.uk/info/200028/council-tax/2351/houses-in-multiple-occupancy-council-tax

princeofpounds

al3lmrsh said:

es5595 said:

So, if there’s seven of you in a house, it’s a HMO so the landlord should be paying. Does it mention this in your contract? If not, let the council know it’s a HMO, and give them the landlords details!

I just contacted my local council and apparently this is true with the only exception being student housing so I'm still liable unfortunately. Thanks for your help anyway!

As Comms69 said, which council is this? I would not necessarily take this advice at face value, as the 'advice' from your ex-council acquaintance illustrates. For instance - what actually qualifies as student housing? 

anselld

The definition of HMO for Council Tax purposes differs from the Housing act definition.  In the case of the OP it would depend on the type of tenancy. 
If it is a joint and several tenancy then it is NOT a Council Tax HMO and thus the OP would be liable for 75% of the full CT.
If each occupant has a separate agreement then is is a Council Tax HMO.
Unless I missed it I can see nothing in the OPs posts which states what type of contract is in place so it is impossible to say for sure if this is a CT HMO. 

saajan_12

Comms69 said:

But this property is a HMO in every possible sense; and therefore the landlord is liable.
(you may be liable to the landlord however by virtue of contract)

What, as in the sense that a Landlord liablility for Council Tax HMO only applies when the property is inhabited by unrelated persons who only have a right to occupy or pay rent for PART of the dwelling? IF OP has a joint & several liability for rent and can jointly occupy the WHOLE property, then liability for the CT would fall to eligible inhabitants and as the only student, that would be OP. 
Source: http://www.legislation.gov.uk/uksi/1992/551/regulation/2/made
OP, please clarify whether you rent a room or if its a joint tenancy for the entire house. 

CIS

Your friend is incorrect and doesn't appear to understand how council tax liability works, they appear to be confused over the process (there is no 'student housing' definition for council tax purposes).

Your contract can say what it wants but it cannot override legislation in respect of council tax liability - all it can do is to create a contractual agreement for you to refund the landlord for any charge he incurs.

Keep in mind that a HMO for council tax and a HMO for licensing are two different things, each with their own definitions.

The link given above for the HMO legislation is incorrect in that the definition was changed - the link is for the original legislation and not the revised the legislation. It changed in 1995. It now reads,

a dwelling which   
(a) was originally constructed or subsequently adapted for occupation by persons who do not constitute a single household;
or
(b) is inhabited by a person who, or by two or more persons each of whom either--
      (i) is a tenant of, or has a licence to occupy, part only of the dwelling;
or
      (ii) has a licence to occupy, but is not liable (whether alone or jointly with other persons) to pay rent or a licence fee in respect of, the dwelling as a whole

Note that the occupancy agreements are not the only way that a HMO can be formed, that is only 1 part of the actual determination.

In this case the decision should be worked as follows,

1) Look at s6(2) of the LGFA 1992. This means that the tenants are the liable parties.

2) All of the tenants are jointly liable under s6(3) of the Act.

3) s6(4) of the Act modifies the joint liability under s6(3) in cases where some of those parties are students - effectively it removes students from joint liability if there is a non-student and leaves the non-student liable.
4) Under s11 of the Act the liable person gets a 25% discount as the only non-student.

Ordinarily the decision stops here and a bill would be issued however where it may be a council tax HMO then further steps needs to be taken,

5) Does the property fall under s8 of the Act as one in which the landlord falls liable ? Check the council tax (liability for owners) regs 1992 to see.

6) If the property meets one of the classes defined under the council tax (liability for owners) regs 1992 then, under s8 of the Act, the landlord falls liable for the council tax charge. Most commonly this is a HMO under Class C (council tax definition as given above).