Review of Rates Liability for the Landlord Sector

This consultation is about rates liability for rental properties. Rates liability on such properties is governed by different rules from owner-occupied properties.

In many cases the landlord (owner) is responsible for paying the rate bill and is then able to cover the cost of the rates by collecting this money from their tenant(s) depending on the terms of their tenancy agreement.

This paper sets out, and seeks views on, proposed changes to the rules covering landlord liability to provide clarity. The current rules1 have proved to be complicated to administer and difficult for landlords (owners) and tenants (occupiers) to understand who is legally liable for rates on rented property.

These proposals include:

• making all rented property with a capital value of £150,000 or under subject to compulsory landlord liability
• (ii) removing the criteria for rent to be payable or collected at intervals shorter than quarterly
• (iii) standardising the landlord allowance for both mandatory liability cases and voluntary agreements at 10 per cent and
• (iv) awarding the allowance whether the property is occupied or vacant