Welsh Government Pushes for Simpler HMO Council Tax Rules After Consultation

16th September 2025
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Welsh Government Pushes for Simpler HMO Council Tax Rules After Consultation

CARDIFF - The Welsh Government is moving forward with plans to simplify how council tax is charged on Houses in Multiple Occupation (HMOs), a recent summary of consultation responses has revealed. The move aims to bring greater clarity and consistency to the system for both property owners and tenants across Wales.

The consultation was launched in response to a growing trend of HMOs being valued on a "disaggregated" basis. This meant that instead of a single property having one council tax bill, each individual room was given its own bill, with the tenants becoming responsible for payment. This approach created confusion and additional costs for both landlords and those living in the properties.

The consultation, which received 103 responses, proposed a return to the traditional "aggregated" method, where an HMO is treated as a single home with one council tax bill, and the landlord remains liable for the payment. A majority of professional bodies, including the National Residential Landlords Association and Propertymark, supported the change, highlighting that it would reduce ambiguity. Local authorities and the Welsh Local Government Association (WLGA) also welcomed the proposals for the consistency they would bring.

While some individuals and landlords expressed opposition, the Welsh Government noted that many of these concerns stemmed from a misunderstanding of the proposed changes. Some thought the new rules would apply to all rental properties, making all landlords responsible for council tax, which was not the case. The proposals specifically sought to maintain the existing and long-standing treatment of HMOs within the council tax system.

The consultation also touched on other subjects, such as the specific definition of an HMO and the impact on the Welsh language. Most respondents did not feel the proposals would have a negative effect on opportunities to use the Welsh language.

The Welsh Government has stated its commitment to making these legislative changes, which will align Wales's approach to HMO council tax with rules already in place in England. An update on the development of the work is expected to be published soon.

For more details, you can read the full summary of responses here.


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