A House in Multiple Occupation (HMO), for Council Tax purposes, is a property where more than one household resides. Unlike a shared tenancy agreement covering the whole property, an HMO consists of separate households, each with their own tenancy, licence, or permission to occupy part of the property.

This typically applies to properties where tenants rent individual rooms and share communal facilities such as kitchens, bathrooms, or living areas.

Who Pays the Council Tax?

In most cases, the landlord is responsible for paying the Council Tax on an HMO. This is because the tenants do not have joint responsibility for the entire property. Council Tax is often included in the rent, along with contributions to utility bills.

Self-Contained Flats

If parts of the property (e.g. flats or units) have their own cooking, washing, and toilet facilities, they may be classed as self-contained.

  • Each self-contained unit will be assessed separately by the Valuation Office Agency (VOA).
  • The VOA assigns a Council Tax band to each unit.
  • Decisions on banding and valuation are made solely by the VOA.

Contact the VOA

HMO Licensing

It’s important to note that Council Tax classification is different from HMO licensing rules. A property may require an HMO licence, licensing rules are based on housing standards and safety regulations.

Learn more about HMO Licensing