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
Read the complete landlord guide on Council Tax
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.
Related terms
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.
Awaab's Law
Provisions extending to the private rented sector under the Renters Rights Act 2025 that set strict timescales for landlords to investigate and remedy hazards such as damp and mould. Named after Awaab Ishak. Breach can lead to tenant compensation and enforcement by the local housing authority.
Decent Homes Standard (DHS)
A government standard for minimum housing quality, extended to the private rented sector by the Renters Rights Act 2025. Properties must be free of Category 1 HHSRS hazards, in a reasonable state of repair, have reasonably modern facilities and provide reasonable thermal comfort.
Disrepair
A property condition falling below legal standards under Section 11 of the Landlord and Tenant Act 1985, the Homes (Fitness for Human Habitation) Act 2018 or the Decent Homes Standard. Tenants can sue for damages and specific performance, and a valid disrepair claim is a complete defence to a possession claim.
Fitness for Human Habitation
The standard set by the Homes (Fitness for Human Habitation) Act 2018. Every rented home must be fit for habitation at the start of the tenancy and throughout. Tenants can sue the landlord directly for breach, without involving the local authority.
Ground Rent
A payment due from a leaseholder to the freeholder. Ground rents on long leases granted on or after 30 June 2022 are capped at a peppercorn (effectively zero) under the Leasehold Reform (Ground Rent) Act 2022.