Student and non-student in same property conundrum?

Student and non-student in same property conundrum?

by Readers Question

Guest Author

9:19 AM, 1st July 2024, About 2 days ago 5

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Hi, probably an apt question at this time of the year. Student tenancy agreements can run until late June, July, August or even September.

Students become liable for council tax from the day after they formally stop being a student. This could be when their course officially ends, some as early as mid May, or the day after they abandon it or get dismissed from their studies.

Some local authorities require ALL the students in the HMO to be registered students, not some students are and some are not, for the property to be Council Tax exempt.

ie If a non-student moves into the HMO or an existing student abandons their course, a liability is created. In this case, the responsibility to pay the council tax falls on the tenant(s) rather than the landlord BUT if you have a professional tenant in an HMO, it is generally the landlord’s responsibility to pay the council tax for the building.

However, if a non-student in the property is working are they a professional tenant? Is the landlord liable for the property’s council tax liability?

Is the property no longer a student HMO and ALL students or the landlord liable for the property’s council tax liability?

Any advice would be greatly appreciated,

Judith


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Comments

Lawrie Madden

12:21 PM, 1st July 2024, About 2 days ago

Just to add another layer to this
I have a student who finishes in June but is going on to take a Masters degree in September so will have to pay council tax for July and August and part of September when the course starts and then will be exempt
Who sorts this out the landlord or the tenant ?

Yvonne Francis

12:33 PM, 1st July 2024, About 2 days ago

I thought if you let a HMO as separate rooms with separate leases the landlord was responsible for Council Tax, and this did not depend on whether or not they were students or professionals. However students usually let on a Jointly and Severally liable lease, and have to prove they are full time students to be exempt from Council Tax. If only one fails to become a full time student then Council Tax is levied. The group is responsible for the tax, not the Landlord. That is simply so because of the one lease for the whole house. 

Once when I had students graduating well before the end of the tenancy, Council Tax was levied for the period they were no longer students. They asked for my advice and I told them to go on arguing. Eventually the Council backed down. I have never to my knowledge have my tenants been billed like that again even when they have graduated well before the end of the tenancy. I have rented to students for well over forty years. 

Yvonne Francis

12:42 PM, 1st July 2024, About 2 days ago

Reply to the comment left by Lawrie Madden at 01/07/2024 - 12:21
In answer to your question: if this student you have is part of a group under a Jointly and Severally liable lease then they are liable. If however you have let to her on a single lease then you are liable. One needs more info to give a proper answer to this?

Judith Wordsworth

13:13 PM, 1st July 2024, About 2 days ago

Reply to the comment left by Yvonne Francis at 01/07/2024 - 12:42
I don't let to students but posed the question for many of those that do as the Local Authority, where my daughter was a student who was let a bedroom as an AST with a licence to the communal arears, stated that the house house (10 bedrooms) had to be occupied by students and should one of them not be then the property was 100% liable for Council Tax.

In her 2nd year there one room was let to a professional - why anyone would want to live with a load of students is beyond my comprehension mind you lol, and the letting agency had no idea re the liability for council tax. I don't think they ever told the council that they had let to a professional as the house had been solely let to students for many many years.

DPT

10:25 AM, 2nd July 2024, About 22 hours ago

If the tenants are on individual agreements then you would have to increase the rent by the full council tax for any that cease to be students during their tenancy. You may need a contract clause to this effect if its during the fixed term.

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