Who pays council tax on a rental property?

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).

Reviewed by Erdem VolkanLast reviewed 16 September 2026How we check facts

Why it matters

What Council Tax means for a landlord

Council tax is a running cost that landlords often forget to budget for. While the property is let, the tenant usually pays. But the bill falls back on you during every void, so a slow re-let costs lost rent plus council tax. Since 1 December 2023, most HMOs count as a single dwelling. That means the landlord pays for the whole house, not the individual tenants. Many councils also add an empty-homes premium of up to 100% once a property has been empty for a year. Longer voids cost even more, so a slow refurbishment can carry a real tax penalty.

Worked example

How it plays out

Priya lets a 2-bed flat in council tax Band C (about £1,750 a year). Her tenant moves out on 1 March and the flat sits empty for a six-week refurbishment. From the day the tenancy ends, the liability switches back to Priya, so she pays roughly £200 of Band C council tax on top of the lost rent for that void. She also runs a 4-bed HMO let room by room: since 1 December 2023 it is banded as a single dwelling, so Priya, not her five tenants, pays its £2,100 annual bill. If the flat stayed empty beyond 12 months, the council could add an empty-homes premium and roughly double the charge.

An illustrative example. Names, places and figures are made up.

Common mistakes

Where landlords go wrong

01Assuming the tenant is always liable: during any void the landlord pays from the day the tenancy ends.
02Forgetting that since 1 December 2023 most HMOs are billed as one dwelling, so the landlord pays, not the individual tenants.
03Not telling the council the exact move-in and move-out dates, which causes mis-billed periods and chase letters.
04Overlooking the empty-homes premium: a property empty over 12 months can attract up to 100% extra, and more for longer voids.

What to do

A short checklist

Tell the council the exact tenancy start and end dates for every let.
Budget council tax into your void costs, not just the lost rent.
Check whether each HMO is billed as a single dwelling and confirm who the council holds liable.
For any long-term empty property, ask the council about the empty-homes premium and any exemptions before work starts.

Sources

Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.