The Welsh Government is seeking feedback on proposed legislation that would treat HMOs as detached homes rather than flats for council tax purposes.
The government says the existing system in which council tax is 'fragmented' and each HMO room is charged as a separate dwelling is unfair as it results in policyholders paying more than other residents living on the same street. This has led to an inconsistent billing system. 
Treating an HMO as a single unit reduces the complexity of the system and allows landlords to pay council tax and pro-rata the final cost to each resident.
There is an urgent need for reform in the segmentation of city taxes. ”
Propertymark welcomed the proposal. Tim Thomas (main image), head of policy and campaigns, said: “The existing system of segmented council tax needs urgent reform.''
“The end result is an unbalanced billing system where policyholders pay more than other residents in the same area.
expensive bill
“Furthermore, local authorities should be prohibited from charging landlords council tax even after a tenant has moved without details of the transfer destination.
“It would be better if council tax for contractors were reduced as a result of the changes proposed by the Welsh Government, as HMOs are extremely difficult for low-wage contractors and people in receipt of means-tested benefits. Because it's a popular and affordable option. People are already struggling with high bills.”
The decision in Wales follows a similar decision by the English government following systematic lobbying by several senior industry figures and MPs.
