MS, Cabinet Secretary for
Finance, Constitution and Cabinet Office: Today, I am launching a
consultation on draft Regulations which propose changes to the
way Houses in Multiple Occupation (HMOs) in Wales are valued and
banded for council tax purposes, and draft Regulations which
propose that the owner remains liable for the council
tax.
HMOs provide an important source of accommodation for many people
across Wales from all walks of life. This type of accommodation
is lived in by families, young professionals, students and
supports some of the most vulnerable and disadvantaged groups,
such as those on low incomes. In recent years, high-quality HMOs
are also being used to provide affordable accommodation.
The proposed changes will ensure that HMOs will be valued as a
single property for council tax banding where appropriate,
creating consistency across the sector, and providing certainty
for councils, landlords and households. This will ease
administrative burdens on councils and ensure the council tax
liability will remain with the owner in the usual way, rather
than councils billing individual tenants who may only occupy the
property for a short period of time.
The consultation seeks views on draft Regulations:
- to ensure HMOs are banded as one property with one council
tax band; and
- to ensure the HMO owner remains liable for council tax.
Attached to the
consultation are two draft statutory instruments which would
replace the Council Tax (Chargeable Dwellings) Order 1992 and the
Council Tax (Liability for Owners) Regulations 1992 subject to
the outcome of the consultation. I am proposing to take this
opportunity to make new Wales-only legislation to aid
accessibility. However, to be clear, the only proposed policy
changes to the existing legislation relate to HMOs as set out
above, and this is the focus of the consultation.
I am grateful for views on the proposals and the draft
Regulations from anyone with views on the treatment of HMOs for
council tax purposes, including from taxpayers, councils,
landlords, HMO owners, tenants and anyone else who wishes to
provide comments. The consultation will run for 12 weeks, and
responses are required by 26 November 2024.
The consultation is available at:
https://www.gov.wales/valuation-houses-multiple-occupation-hmos-council-tax
This statement is being issued during recess in order to keep
members informed. Should members wish me to make a further
statement or to answer questions on this when the Senedd returns
I would be happy to do so.
