Landlord not registered flats as separate, creating difficulties regarding council tax & bills

SN2021

I moved into a 1 bed flat within the last month that used to be part of a larger bungalow with the next door flat. Both flats have their own name but share a flat number (i.e. "House name", 43 South Street). The bungalow was separated into two flats at least 4 years ago and each has its own door outside, there is no shared space. 

The property was advertised with the council tax included in the rent. It is managed by the estate agents for the landlord. It is a fixed term 12 month tenancy agreement with a break clause only at the end of the fixed term. 

The issue that I have is that the flats have not been registered with the council, land registry, royal mail etc so the landlord can pay less council tax. 

My suspicions first arose when trying to set up broadband for the property. For each of the providers (BT, Sky etc) the only property listed was the numbered bungalow (i.e. 43 South Street). One provider told me the flats would have to be registered as separate for them to install broadband. The estate agent said the neighbour had similar issues but found there is a communal connection with one broadband provider which they can use. 

The only property listed on the land registry and governments Council tax band website is the original bungalow (43 South Street). 

Though each flat has its own boiler, there only seems to be one electricity meter as my account for the meter just says the flat number (43 South Street). 

The landlord is most definitely not registering the separate flats so that they can pay less council tax then get a quick and easy rent. This was highlighted to me by the estate agent who I contacted with my concerns, they contacted the landlord and said in an email "The flats aren't registered as individual properties and that is why the council tax is included in the rent."

Because of all this, the complications it causes and the potential risks it creates for the future I would like to end the tenancy early and was wondering about what my options are. I'm also going to contact shelter and citizens advice. 

One option I've seen is the "Right to unwind" which applies within the first 90 days of a tenancy and applies when the tenancy was signed due to misleading or aggressive action. 

Are there any other options for ending the tenancy early?

canaldumidi

I'm afraid not. Without the LL's agreement your contract is binding and will last 12months.

The council tax does not seem an issue for you provided the LL is paying it - if he does not the council will demand payment from the occupants ie you and your neighbour.

Electricity seems to be an issue since there is only one supply and you seem to be paying this ie you are paying for your neighour's electricity too? Haveyou asked the neighbour if they have a meter and/or account?

From what you say (though it's a bit ambiguous), broadband is resolved as you now have access to a (shared?) provided.

Your choices are

* find a solution to the electricity issue, either sharing the cost with the neighbour or by negotiating with the LL for 2 supplies

* ensure the CT is being paid

* deal with the (not terribly serious) inconveniences of a shared address

or

* negotiate an early surrender with the LL,who might/might not agree, and might/might not impose condition (costs)

and/or

* report the LL to HMRC, the CT dept, possibly his mortgage lender (check the Land Registry), council licensing dept (if in an areaof compulsorylicecing.

How about other LL obligations? Do you have

* electrical dafety report?

* 'how to rent' leaflet

* deposit PI?

* EPC?

MaryNB

canaldumidi said:

I'm afraid not. Without the LL's agreement your contract is binding and will last 12months.

The council tax does not seem an issue for you provided the LL is paying it - if he does not the council will demand payment from the occupants ie you and your neighbour.

Electricity seems to be an issue since there is only one supply and you seem to be paying this ie you are paying for your neighour's electricity too? Haveyou asked the neighbour if they have a meter and/or account?

From what you say (though it's a bit ambiguous), broadband is resolved as you now have access to a (shared?) provided.

Problem is that if it is deemed to be two separate properties and the council is receiving payment from the landlord for one property (which seems to be the case) then it isn't being paid in full. The OP and/or their neighbour will be liable for the shortfall if the council finds out and decides it should be charging each property separately.

SN2021

Thank you for your reply.

I have all the other documentation - EPC etc.

Just to clarify, the flats should be registered as 2 separate properties shouldn't they for council tax? They have separate outside entrances and the landlord should be paying council tax for the two flats separately rather than just 1 bungalow? 

SN2021

MaryNB said:

canaldumidi said:

I'm afraid not. Without the LL's agreement your contract is binding and will last 12months.

The council tax does not seem an issue for you provided the LL is paying it - if he does not the council will demand payment from the occupants ie you and your neighbour.

Electricity seems to be an issue since there is only one supply and you seem to be paying this ie you are paying for your neighour's electricity too? Haveyou asked the neighbour if they have a meter and/or account?

From what you say (though it's a bit ambiguous), broadband is resolved as you now have access to a (shared?) provided.

Problem is that if it is deemed to be two separate properties and the council is receiving payment from the landlord for one property (which seems to be the case) then it isn't being paid in full. The OP and/or their neighbour will be liable for the shortfall if the council finds out and decides it should be charging each property separately.

Thank you for your reply, this was my concern exactly. It doesn't seem right and I don't want a backdated council tax bill at the end of my tenancy.

Can I go to the estate agents with this information as a reason for ending the tenancy or use it as a leeway for negotiating the surrender of the tenancy? 

Philomel

I'm curious: if the landlord is paying the council tax why is the tenant liable for the shortfall? I'm asking because my sister recently had to move out of a warehouse flat when it became clear that the landlord hadn't declared it as a residential property. She and flatmates had been told council tax was included in rent. Nobody came after the tenants for additional tax altho the landlord was pursued for various monies afaik. Should she have actually been liable for the council tax and just got away with it because the landlord was a bigger concern? 

MaryNB

Philomel said:

I'm curious: if the landlord is paying the council tax why is the tenant liable for the shortfall? I'm asking because my sister recently had to move out of a warehouse flat when it became clear that the landlord hadn't declared it as a residential property. She and flatmates had been told council tax was included in rent. Nobody came after the tenants for additional tax altho the landlord was pursued for various monies afaik. Should she have actually been liable for the council tax and just got away with it because the landlord was a bigger concern? 

If it's a HMO and they are on separate contracts, the landlord is liable (see first part in bold).

If the entire property is rented out on a single contract the residents are liable (see second part in bold).


From citizens advice:

The owner will be liable if any of these are true:

• the property is in multiple occupation, for example, a house shared by a number of different households who all pay rent separately

• the people who live in the property are all under the age of 18

• the property is accommodation for asylum seekers

• the people who are staying in the property are there temporarily and have their main homes somewhere else

• the property is a care home, hospital, hostel or women's refuge

If only 1 person lives in a property they will be the liable person. If more than 1 person lives there, a system called the hierarchy of liability is used to work out who is the liable person. The person at the top, or nearest to the top, of the hierarchy is the liable person. Two people at the same point of the hierarchy will both be liable.

The hierarchy of liability is:

1. A resident owner-occupier who owns either the leasehold or freehold of all or part of the property.
2. A resident tenant.
3. A resident who lives in the property and who is a licensee - this means that they’re not a tenant, but have permission to stay there.
4. Any resident living in the property, for example, a squatter.
5. An owner of the property where no one is resident.

SN2021

Thank you. In my case the landlord is renting out 2 separate flats on 2 separate contracts but hasn't registered them as separate properties so if the council found out then I'd be liable for the tax? 

RAS

Yes, both you and your neighbour. Whether the Council would apportion half of what the LL had paid before pursuing you for the rest, I don't know. They could go for the lot and leave you to chase the landlord for the rebate.

@CIS

Have you checked the Planning Portal to see if the split was done officially, I'd be worried about fire breaks etc.

Are you on the electoral roll?

SN2021

RAS said:

Yes, both you and your neighbour. Whether the Council would apportion half of what the LL had paid before pursuing you for the rest, I don't know. They could go for the lot and leave you to chase the landlord for the rebate.

@CIS

Have you checked the Planning Portal to see if the split was done officially, I'd be worried about fire breaks etc.

Are you on the electoral roll?

I have checked the local authority database of planning applications and there is a post from 2013 for the property for "Alterations to create 1 new flat".

I am not on the electoral roll here yet, I have only moved in the last couple of weeks.

I just want to leave the flat now I think, I don't want to risk the council finding out in 11 months time and sending me the whole bill. So is negotiating a surrender of the tenancy the only option? There has not been any misselling or misleading? 

lr1277

Do you have an EICR? I believe the landlord has to provide this as it is a legal obligation. It is meant to be produced every 5 years, if memory serves.

If you don’t have an EICR and one needs to be produced, you will have decide if you want to be in when the electrician is doing their survey. Depends on your view of covid. If you don’t want to be in, then LL/LA will have to supervise.
This report might and I say might highlight that two properties are on one electricity meter. But this may also depend on what the electrician is told before carrying out their survey.