When it comes to renters relocating, there are many confusing aspects to factor in that will fluctuate - with council tax a consistent culprit.
Aidan Rushby, CEO of Home Walkthroughs rental app, Movebubble, explains:
“Council tax can easily cause confusion - especially when moving home. Considering it’s usually the renters’ responsibility to pay council tax, we want to help make sure home movers know everything they need to know to avoid being startled by any nasty surprises.
“At Movebubble, we specialise in helping renters find their new home through our video-first rental app, which has been designed to make the process as easy and seamless as possible, from searching to securing a property - all online - with just a few taps on the app.”
So whether you’re about to rent your first-ever home and don’t have a clue how council tax works - or perhaps you’re a long term renter who isn't entirely sure around the ins and outs - please find below a complete guide of everything you need to know about council tax if you’re a renter.
What is council tax?
Council tax is just as unexciting as it sounds, however, it’s incredibly important to understand what it is - especially if you’re the person that needs to pay for it (which is the case more often than not).
Council tax is an annual fee payable to your local council for the local services it provides - such as rubbish collection services; street lighting and cleaning; road maintenance; libraries and education services; record keeping (such as births, deaths and marriages); leisure and recreation projects and even police and fire services.
Who has to pay council tax?
The rates for council tax are set by over 9,000 local authorities across the country, and are usually payable in ten monthly instalments, followed by two months of not paying anything at all.
Paying the council tax bill is usually the responsibility of the person living in the property. This would be either the owner-occupiers or the renters in privately rented or council accommodation.
Some people are exempt from paying council tax, including full-time students and some live-in carers. It’s worth noting that discounts and reductions are available, too.
The amount of council tax payable varies per property, with every property being placed into a council tax band between A and H, based on its size, location and a few other factors.
Every April, you’ll be sent a council tax bill with the option to pay in full, or in ten monthly instalments by direct debit, as mentioned above.
Do I have to pay council tax if I’m renting?
If you are renting a home, yes, you will most probably have to pay council tax on the property. As the payment for council tax goes directly to the local council, most landlords will not include it in the cost of monthly rent and will require you to pay your council tax bill separately.
However, for renters who are in the market for convenience and ease - Movebubble has seen an emerging trend of home hunters searching for properties which include bills and utilities within the overall price.
Aidan comments: “It’s important to remember that the cost of council tax varies in different areas and in many cases, won’t be included within the price of rent.
“However, the concept of ‘all-inclusive’ package properties - where the cost of council tax and bills are included in the rent - is on the rise, with renters looking for convenience and ease.
“In fact, Movebubble has seen a 28% year on year rise in demand for these types of properties. Which is why we offer a ‘bills-included’ filter on the app to help renters easily find the perfect property to suit their needs.”
It is highly recommended that you check your contract and/or speak to your landlord or letting agent to find out whether you need to pay council tax for your rented property.
Before renting a property, you can speak directly to the agent in charge of it through our Movebubble app - ensuring that you know everything that you need to know from the outset.
Some properties can be exempt from council tax, as are some groups of people. You may also be eligible for a council tax reduction depending on your circumstances.
Lastly, to help put the concept of council tax into context, we have included an example of council tax prices below:
Examples of UK council tax prices:
Highest council tax in London: Kingston-upon-Thames
Council tax for 2020/21:
Band A = £1,316.53
Band H = £3,949.60
Lowest council tax in London: Westminster
Council tax for 2020/21:
Band A = £520.19
Band H = £1,560.56
Highest council tax in the UK (outside of London): Blaenau Gwent, Wales
Council tax for 2020/21 (Brynmawr area):
Band A = £1,340.17
Band H = £4,020.52
Lowest council tax in the UK (outside of London): Windsor & Maidenhead
Council tax for 2020/21:
Band A = £767
Band H = £2,300
