Council tax: when the landlord pays the bill instead of the tenant

Council tax is a local tax paid to local authorities. The money funds things such as refuse collection, the police, the fire service and libraries. In principle, it is paid by an adult (aged 18 or over) who lives in the property as their main home. It makes no difference whether they are the owner or a tenant.

The general rule

If someone rents a house or flat and normally lives in it, the bill is issued in their name. The charge applies to the whole household. People who live together, such as partners or friends, receive one bill. When two people are named on the tenancy agreement, both are responsible for paying, but the total amount is the same as for one person.

Sometimes a landlord includes council tax in the rent. It is therefore worth checking your tenancy agreement to see exactly what the charge covers.

When the landlord pays

According to information cited by Polish Express, which refers to Citizens Advice, the bill falls on the owner in rare cases:

• when the property is an HMO (House in Multiple Occupation), that is, a house shared by several households, each of which pays rent separately;
• when all the residents are under 18;
• when the residents are seeking asylum;
• when it is a temporary let while emergency work is carried out at the main home.

The first three situations are also confirmed by the Bolton council website, which lists HMOs, properties occupied by asylum seekers and properties occupied only by people under 18. The fourth case could not be confirmed in a second source.

What about HMOs

The UK Parliament (House of Commons Library) explains that changed rules have applied in England since 1 December 2023. Under them, an HMO within the meaning of the Housing Act 2004 is treated as a single property, and the landlord pays the bill. Previously, such houses were not always treated in this way under the council tax system.

When more people live in a property, responsibility for payment is determined by the so-called hierarchy of liability. At the top of it is, among others, an owner-occupier living in the property. A tenant living with their landlord is therefore not responsible for the bill if the landlord does not pay it.

What this means for you

Many people rent rooms in shared houses. If it is an HMO within the meaning of the rules and each resident pays rent separately, the landlord should in principle pay the council tax. However, the landlord may include this cost in the rent. When renting a whole flat or house, the bill usually passes to the tenants. It is worth checking the terms of your tenancy agreement and, if in doubt, asking the council or an advice organisation such as Citizens Advice. The rules may differ between England, Scotland, Wales and Northern Ireland.