Council Tax
The tax charged on residential property by the local authority. Tenants are usually liable while the property is let as their main residence. Landlords become liable during void periods and for most HMOs (where each tenant has their own AST).
At a glance
- Main-residence tenants
- Usually liable while let as main home
- Void periods
- Landlord liable
- HMO liability
- Landlord liable for most HMOs with separate ASTs
Full guide
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Deadlines, fines and step-by-step compliance in our in-depth resource.
Open full guideWhy Council Tax matters for landlords
Council tax liability is a classic surprise cost for new landlords, especially those who run HMOs on individual room contracts. Under the Council Tax (Liability for Owners) Regulations, many HMO configurations move liability to the landlord even though the tenants physically live there. Long voids also reset liability, and some councils levy a premium on properties empty for long periods — worth factoring into refurb timelines.
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Related terms
Additional Licensing
A discretionary HMO licensing scheme a council can introduce under section 56 of the Housing Act 2004 to cover smaller HMOs that fall below the mandatory five-person, three-storey threshold. It is separate from selective licensing (which covers all rented homes in a designated area, not just HMOs). Operating an unlicensed HMO where additional licensing applies is a criminal offence with civil penalties up to £30,000 and exposure to a Rent Repayment Order of up to 24 months’ rent.
Article 4 Direction
A planning tool councils use under article 4 of the Town and Country Planning (General Permitted Development) Order 2015 to remove permitted-development rights, most commonly the right to convert a single-family home (Use Class C3) into a small HMO (Use Class C4) without planning permission. In an Article 4 area, every C3 → C4 conversion needs a full planning application, and operating without it can trigger an enforcement notice, a planning contravention notice or a refusal of HMO licence.
Rent Repayment Order (RRO)
A First-tier Tribunal order requiring a landlord to repay up to 12 months’ rent (24 months under the Renters Rights Act 2025 for some offences) for specified housing offences: unlicensed HMO, breach of selective licensing, illegal eviction, harassment, failure to comply with an Improvement Notice or Banning Order. Sought by the tenant or, separately, by the local council. Triggered without needing a criminal conviction — the tribunal applies the criminal standard of proof to the underlying offence, then orders repayment.
Civil Penalty Notice
A financial penalty up to £30,000 a local housing authority can impose as an alternative to criminal prosecution under the Housing and Planning Act 2016, the Housing Act 2004 (HMO offences) and various tenancy offences. Common triggers: failure to comply with an Improvement Notice, breach of HMO licensing, unlawful eviction, breach of selective licensing or letting an unsafe property. The landlord can appeal to the First-tier Tribunal within 28 days; unpaid penalties are recoverable in the County Court.
HMO (House in Multiple Occupation)
A property let to 3 or more people from 2 or more households who share facilities (kitchen, bathroom, toilet). Any HMO with 5 or more occupants from 2 or more households needs a mandatory HMO licence from the local authority. Many councils also operate additional licensing for smaller HMOs.
Landlord Database (Private Rented Sector Database)
A national digital register of private landlords and rented properties in England, established under the Renters Rights Act 2025. Every landlord must register and provide property details and proof of compliance (gas, electrical, deposit protection, EPC) before letting. Operated by central government, accessible to local councils and tenants. Failure to register is an offence with civil penalty up to £7,000 per breach, and a court can refuse a possession order under Section 8 if the property or landlord is not registered.