This page explains how Council Tax applies to houses in multiple occupation (HMOs), including who is responsible for paying the bill.
What is an HMO for Council Tax purposes?
For Council Tax purposes, a HMO is generally a property occupied by people who do not form a single household and who occupy only part of the property.
This can include:
- Shared houses where residents rent individual rooms.
- Bedsits.
- Properties where occupiers have separate tenancy or licence agreements.
- Properties where individuals pay rent for only part of the accommodation.
- Buildings that have been divided into non-self-contained living accommodation.
The Council Tax definition of a HMO differs from the definition used for housing licensing purposes. A property may be considered a HMO for Council Tax purposes even if it does not require an HMO licence.
What is a household?
For Council Tax purposes, a household is usually:
- one person living alone
- members of the same family living together
A single household includes:
- married couples
- civil partners
- couples living together as partners
- relatives living together, including step-relatives, half-relatives and foster children
Relatives can include:
- parents and children
- grandparents and grandchildren
- brothers and sisters
- aunts and uncles
- cousins
- nieces and nephews
Examples
| Occupancy arrangement | Number of households |
|---|---|
| A family renting a property together | One household |
| A couple living together | One household |
| Three unrelated friends sharing a house | Three households |
| A couple sharing with an unrelated friend | Two households |
| A family with a live-in au pair | One household |
Where occupiers do not form a single household, the property may be treated as a HMO for Council Tax purposes.
Who pays the Council Tax?
The person responsible depends on the occupation and tenancy arrangements within the property.
The landlord or owner is usually responsible when:
- Rooms are let individually.
- Occupiers have separate tenancy or licence agreements.
- Residents only rent part of the property.
- The property is treated as a Council Tax HMO.
The tenants are usually responsible when:
- The entire property is rented under a joint tenancy agreement.
- The occupiers rent the property together as a single group.
Each case is considered on its own circumstances, and we may need to review tenancy agreements and other evidence before making a decision.
Tell us about changes
You should tell us promptly if:
- Occupiers move in or out.
- Tenancy arrangements change.
- The property changes from a single household to shared occupation.
- Rooms begin to be let separately.
- Ownership or management of the property changes.
Report a change
Find out how to report a change that affects your Council Tax.
Providing up-to-date information helps us ensure that Council Tax liability is assessed correctly and that bills are issued to the appropriate person.