Will converting to HMO increase my Council Tax?

Typically, no. The changing of a property’s use class from C3 (standard residential dwelling) to C4 (small HMO) will not result in the increase of the property’s Council Tax band in most instances/constituencies.

However, the tax band may be increased (or decreased) if significant changes have been made to the internal structure of the property, such as adding a large extension or converting each room into a self-contained flat.

A property that has increased in size may be assigned an increased tax band when it is sold.

HMOs are considered a single property for taxation purposes, which means that they only have one band, unless in exceptional circumstances, such as a Section 257 HMO – where it may have multiple Council Tax charges.

Unsure of your local council’s licensing requirements, check the Govt. HMO license checker here.

Or if you would like some more advice on your HMO project, speak to us today.

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