Moving House and Council Tax

confused.com2

Hello,

Just wanting thoughts and if I'm worrying unnecessarily!

I'm selling my new build (well 6 years old so not that new!) and buying a much older house. My current house is a semi, small, typical new build and in council tax band C (2.2k per year).

New house that we've offered on is much more expensive (175k more) and more land and is council tax band A (1.5k per year) Quite a saving!

Is it likely to be rebanded when sold? I can't quite fathom how my cheaper and much smaller house is 2 bands higher?! New house hasn't been extended and is the original layout.

Feel like it's to good to be true, have doubled checked and all houses on the road are Band A apart from 2 that are Band B. If a 4 bedroom house can be Band A how can a bedsit also be Band A?!

Same council, same village.

Really hoping it's true but genuinely doesn't seem like it can be!

NanookOfTheNorth

For the house you are moving to has there been any changes to the property such as extension/loft conversion etc? It might be council tax A now, but if there have been changes then there will an "improvement indicator" meaning the council tax band will be reviewed next time it's sold (ie when you purchase it). Have a look at the link below with postcode and house number, if the "Improvement Indicator" is No then it will stay as council tax band A

https://www.gov.uk/council-tax-bands

confused.com2

Absolutely no changes, extensions, loft conversions etc.

I mean that's great, though starting to feel a bit royally ripped off the past 6 years! It's a significant saving!

anselld

As above, check for the improvement indicator. No indicator = no revaluation on purchase. However, without getting into any political debate, anything could happen in future especially as AB has backed reform of Council Tax and Stamp Duty. Enjoy while it lasts!

confused.com2

Yes will certainly enjoy it but I wouldn't be at all surprised if in the future I had to pay more!

lincroft1710

I would say that Band A is incorrect and somewhere along the line a mistake has been made. Or these are former council houses, possibly "Airey" types, which are known to be "defective dwellings", which have since been repaired

Tabieth

Something similar happened to me last year. I moved from a modern 2-bed rental flat that was band E, to a 2-bed mid terrace that’s a band A. It’s been a significant saving! My house is in a very good area, on a nice street, and is much more comfortable to live in than the flat was. I’m sure there will be an overhaul of the council tax system at some point but until then I’m enjoying the cheaper council tax.

Bigphil1474

A lot of new builds get banded quite high. Someone must have a reason. Unlikely to be rebanded buying an old house though. Unlucky at least. We bought a 4 bed semi that has had a 2 storey extension and a single storey extension, and an internal garage conversion since it was last sold and we haven't been revalued.

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82077218#Comment_82077218

and that in a nutshell is why the council tax banding system is not fit for purpose. I added a detached single garage to a 3 bed semi and it now has an improvement flag set against it making it less attractive to buyers due to risk of re-banding. Yet other properties in the same street have extended their actual living space and not changed on sale.

KittenChops

https://forums.moneysavingexpert.com/discussion/comment/82077279#Comment_82077279

I woudn't think an improvement indicator would make a property less attactive to buyers.

When we were looking to move, for any house we thought we might make an offer on, I checked to see if there was an improvement indicator - but only so I'd be aware of a potential increase in council tax. It wouldn't have put me off making an offer.

Any property that had had so much 'impovement' made to it that it would jump several bands, would have likely been above my budget anyway!

lfc321

The Council Tax system is a complete mess. One of these days a government will sort it out.
Not in our lifetimes, maybe.. But one of these days.