Council tax and renting

Shelldean

My family member is looking to move from one rented house to another.

They've had an offer accepted, but the landlord has said that a condition of them renting from him, his name must be on the council tax.

Now my research and the family members indicate this is such a huge red flag it's impossible to ignore.

What could be the landlords reason behind wanting to be on council tax?

Jude57

https://forums.moneysavingexpert.com/discussion/6682490/council-tax-and-renting

It's not necessarily a red flag, but it depends on the circumstances. If your family member is living alone in the rented property, their name should be on the Council Tax register. Council Tax is payable by a hierarchy of liability, starting with the occupants of a property, whether they own or rent it. If your family member is simply renting a room as a lodger or the property is a House in Multiple Occupation (HMO) then no, their name should not be on the Council Tax register and the bill for Council Tax and other utilities should be in the landlord's name.

Shelldean

https://forums.moneysavingexpert.com/discussion/comment/82128672#Comment_82128672

It will be a family of four renting the whole property.

Shelldean

Did some googling and AI tells me.… Although I am aware AI is not always correct, I think there's enough to maybe keep searching

A landlord wanting their name on your council tax bill is highly unusual and often a major red flag if you are renting the entire property. According to UK law, the person living in the property (the tenant) is legally the "liable person" for council tax, not the non-resident owner. [1, 2, 3] If your landlord is insisting on being named on the bill or wants to keep the bill entirely in their name, they are usually doing it for one of the following reasons:

⚠️ Possible Red Flags (Illegal or Devious Motives)

• Mortgage or Insurance Fraud: Their mortgage or landlord insurance may strictly forbid them from renting out the property. By keeping their name on the council tax, they are trying to hide the fact that they have tenants from their bank. [1]
• Tax Evasion: They might be trying to hide the rental income from HM Revenue and Customs (HMRC) by pretending they still live there. Alternatively, they may be trying to avoid Capital Gains Tax when they sell the property by claiming it was always their primary residence. [1]
• Illegal Subletting: The "landlord" might actually be a tenant themselves who is subletting the property to you illegally, breaching their own tenancy agreement.
• Parking Permits: In some areas, councils only issue resident parking permits to people named on the local council tax bill. The landlord might be using your address to secure a cheap or restricted parking space. [4]

💡 Legitimate or Less Malicious Reasons

• It is a House in Multiple Occupation (HMO): If you are only renting an individual room and sharing communal spaces (like the kitchen or bathroom) under a sole agreement, the landlord is legally required to have the bill in their name and pay it directly.
• "Bills Included" Agreement: If your tenancy agreement explicitly states that council tax is included in your monthly rent, the landlord may want their name on the account to handle payments directly. However, even in this case, the council usually requires the resident tenant's name to be on the account, with the bill sent "care of" the landlord.
• Misunderstanding the Law: The landlord might falsely believe that if you fail to pay your council tax, the council will come after them for the debt. In reality, the council chases the resident tenant, not the landlord. [2, 5, 6, 7, 8, 9, 10]

🚨 The Risks to You

If you allow the landlord to keep their name on the bill while you live there:

1. You lose your Single Person Discount: If you live alone, you are entitled to a 25% discount. If the landlord’s name is also on the bill, the council assumes two adults live there, and you will be overcharged. [2, 9]
2. Fraud Complicity: If the council discovers the landlord is lying about living there, you could get caught up in a fraud investigation.
3. Lack of Proof of Address: You will struggle to open bank accounts, register for a GP, or vote, as a council tax bill is the most widely accepted proof of address in the UK.

whaleroad

Major red flag.

Is he asking for the relative to pay the council tax to him, so he pays the council tax bill? That's very risky for your family member as they'd still be liable for any default. It sounds like a scam of some sort and if I were to guess it would be that his mortgage lender doesn't know he's renting out the property.

Jude57

https://forums.moneysavingexpert.com/discussion/comment/82128673#Comment_82128673

Then yes, your relative and spouse/partner are liable for Council Tax and should inform the Council As soon as they move in. Depending on their financial situation they may qualify for Council Tax Reduction and the website of the relevant Council (official websites for Councils always end in .gov.uk) should have information on how to apply. It's very important to apply for CTR as soon as possible because it won't be backdated without a good reason. If your relative wants to get an idea of how much the full Council Tax will be, he can find out what Band the property is in here:

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

Once they know the Band, the Council's website should tell you how much the full year's Council Tax will be. Then simply divide that amount by 365 and multiply that figure by the number of days left in the Council Tax year, so for example, from today until 31st March 2026. Remember, it will take a while for the first Council Tax Bill to be issued, so your relative should be setting money aside ready for payment when they get the bill. I'd recommend that they sign up to pay it, and their utility bills, by Direct Debit which is an easy way to make sure everything is paid on time.

Jude57

https://forums.moneysavingexpert.com/discussion/comment/82128681#Comment_82128681

There's so much wrong with that conflation of random words that it's difficult to know where to start. But the first paragraph contradicts itself and there's no such thing as 'UK law'. I was a Council Tax recovery officer for over a decade. Most Councils have detailed, accurate information about Council Tax on their websites so there's no need to dig far.

Jude57

https://forums.moneysavingexpert.com/discussion/comment/82128692#Comment_82128692

If you're right and the landlord is saying that the tenants must pay him the Council Tax, then no, don't touch it with a bargepole. Any such private agreement between parties is irrelevant to the Council and they won't involve themselves in sorting it out. They'll simply follow the law and pursue the tenants. And from the tenants perspective, it's possible that the Council will do data matching with either the Electoral Roll and/or benefits systems and that could have all kinds of ramifications for the tenants, their ability to claim benefits and to obtain credit being just two.

I'm inclined to agree with you that the landlord may not have the necessary permissions to be letting the property and that makes me wonder, is there a compulsory registration scheme for landlords in that Council area? The Council website should have information. And if the landlord isn't complying with those requirements, how confident could you be that a) the property has all the relevant, legally required safety certificates and b) that any issues would be promoting and competently dealt with? And, as I'm sure you know, if the landlord doesn't have the requisite permissions, any contents insurance that the tenants take out (and tenants should always unsure their belongings) may be invalidated. And if that happened, it could affect their ability to get insurance cover in the future.

I'm with you on this being distinctly iffy.

FlorayG

I'm a landlord and I cannot think of a single genuine reason for this. There's something dodgy going on.

Have they asked the landlord why he wants himself named on the council tax? If he has a genuine legal reason then he should be happy to provide same

Shelldean

Small update.

They've gone back to the landlord and said they feel they cannot accept his condition due to legal implications. He's then declined to rent his property to them

To answer a few questions asked

No idea why he wanted it this way or if he expected them to pay him and he in turn pay it. Or for them to pay.

Also no idea if he wanted just him on bill or him and them

They would've been the sole tenants husband wife and two children. No benefits claimed.

We know the council tax band as it was listed in the open rent advert

Shelldean

https://forums.moneysavingexpert.com/discussion/comment/82128735#Comment_82128735

Jude57

No register of landlords just HMOs

Not sure what his angle was.

They're not proceeding with the rental and will continue searching.