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Your guide to understanding Council Tax bands

Council tax bands are used in the United Kingdom to determine how much each household should pay in council tax. Paying your council tax bill is a legal obligation for residents in the United Kingdom, and failure to pay can result in serious consequences. Therefore, it is crucial for every homeowner and tenant to understand the calculation of council tax and the role of council tax bands. Let’s take a look at what council tax is, how it is calculated, and how to pay it.

What are council tax bands?
Council tax bands are categories used to assess the value of residential properties for the purpose of levying council tax. Each property is assigned to one of these bands, ranging from Band A (the lowest value) to Band H (the highest value). Your council tax band is determined by the market value of your property on a specific date. In England, it is based on what the value of your property was on April 1, 1991.

What is council tax used for?
Council tax revenue funds a wide range of public services and infrastructure that benefit residents in the area. Some of the key areas where council tax funds are typically allocated include:

Local government services
Education
Social care
Waste collection and recycling
Transportation
Public safety
Parks and leisure facilities
Housing services
Emergency services

Different council tax bands and their costs
Here are the council tax ranges for England based on your property value*:

A: Up to £40,000
B: £40,000 - £52,000
C: £52,000 - £68,000
D: £68,000 - £88,000
E: £88,000 - £120,000
F: £120,000 - £160,000
G: £160,000 - £320,000
H: More than £320,000

Factors that affect council tax bands
When assigning a property to a council tax band in the United Kingdom, several factors are taken into consideration to determine its assessed value. One of these factors is the location of a property, as those situated in areas with higher property values or better amenities may be assigned to higher bands.

The size and type of the property, including the number of bedrooms, bathrooms, and overall floor space, are also taken into consideration. Larger properties, or those with additional features, such as garages or outbuildings, may be assigned to higher bands.

Additionally, the age and condition of the property can influence its assessed value. Older properties or those in need of significant repairs are typically assigned to lower bands, while newer or well-maintained properties may be assigned to higher bands. Any alterations or improvements made to the property since the valuation date may impact its assessed value and council tax band. Whether the property is used residentially or commercially may also increase its tax band.

Council tax for newer properties
Council tax on newer properties in the United Kingdom is calculated in a manner similar to that of older properties, but with some differences in the assessment process. For newer properties, the valuation date used to determine the council tax band is typically the date of completion. In some cases, comparable properties in the area may be considered to establish an appropriate valuation.

The quality of construction materials and finishes used in newer properties may contribute to their higher assessed value compared to older properties. Features such as high-quality fixtures, fittings, and construction techniques can impact the property's valuation. Properties built by reputable developers known for constructing high-quality homes in desirable locations may command higher market values, affecting their council tax bands.

Paying your council tax bill
Most people pay their council tax in 10 instalments over a 12-month period; however you can pay in fewer instalments or even in one annual lump sum if you wish. There are several ways to pay your council tax, including via direct debit, online payment, or telephone payment. If you prefer to pay by post, you can send a cheque payable to your local council along with the payment slip from your council tax bill. However you pay, make sure you allow enough time for the payment to reach the council before the due date.

There are severe consequences for failing to pay your council tax bill. Your local council may impose additional charges or penalties for late payment, and these charges can accumulate over time, increasing the amount you owe. If you continue to refuse or neglect to pay your council tax, the council may eventually apply for a committal warrant, leading to imprisonment in extreme cases.

If you are struggling to pay your council tax bill, you should openly communicate this with your local council. They may be able to offer support or assistance, such as setting up a payment plan based on your financial circumstances.

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GOV.UK*

Property Management 101

When you’re a landlord, it can sometimes become difficult to manage properties as well as own them as you struggle to define your work-life balance. Many letting agents offer property management as a service to make your life as a landlord easier. In this article, we discuss the benefits of having property management in place and key points that need to be achieved when managing property.

What is property management?
Property management is the constant management and oversight of rental properties. When you’re a landlord, it can become difficult to manage all your properties, so we recommend having the support of a letting agent. Having the middleman in place allows a professional relationship to be maintained between the landlord and tenant, creating a pathway of clear communication. When managing property, you are regularly juggling multiple issues from different properties or tenants; this can range from maintenance problems to collecting late rent.

Verify your tenants
When managing a property, you need to discover the correct tenants that suit your property. Having assistance and support from a letting agent makes this process much simpler. To ensure you find the right tenants and that they are who they say they are, you will need to verify their income and identification before agreeing to a tenancy. It is important to check if your potential tenant has the right to rent in England and that they can supply references from previous landlords, helping you identify if they are the best fit for you and your property.

Legal requirements
When managing property, it is vital to ensure that the property is up-to-date with all the legal requirements before letting it out to tenants.

This includes:

An energy performance certificate
Fitting smoke and carbon monoxide alarms
Gas and electrical safety certificates
Checking your insurance policies

By having these requirements in place allows you to get your property on the market efficiently, reducing its vacant standing period. Having a good tenancy agreement is also an important part of being a property manager. The written agreement provides clear rules, preventing potential misunderstandings and conflict, all while allowing a professional relationship to be maintained.

Establish a professional relationship
When managing tenants, you need to ensure you maintain a professional relationship throughout your agreement, allowing you to deal with problems at face value and not have a bias towards or against your tenants. You want your tenants to be able to approach you with issues and have trust and respect within you all while maintaining good, clear communication. When you're a landlord, there's a chance it can become too personal with tenants, potentially breaking the professional relationship you are meant to maintain. This is why it is always good to hire a letting agent to provide this service, creating fewer complications.

Regular property checks
Once you have filled your property with tenants, it is vital to maintain regular inspections. This allows you to ensure they are caring for the property to your standard and meeting all their responsibilities as tenants. The regular checks allow you to identify any maintenance and safety issues throughout the property and give you the chance to discuss any issues with the current tenants. When performing these checks, you need to give the tenants notice and they should take place at three or four monthly intervals.

Market trend updates
When managing property, it is key to stay up-to-date and on top of what is happening within the rental market. This allows you to keep competitive rental rates, ensuring you adjust yours with the market and maintain happy tenants. This also allows you to stay up-to-date on certain requirements that may be needed in the future, giving you plenty of time to prepare and allowing you to keep your property constantly on the rental market.

Discover a trusted letting agent
As a landlord, it can become hard to manage all the different daily tasks of being a property manager, so it is important to find a trusted letting agent to help delegate these tasks. These tasks could involve collecting rent, finding tenants, conducting property checks, achieving legal certificates, and property maintenance. So having the help of a letting agent allows you, as a landlord, to focus on building your property portfolio and letting the agent complete the hard work for you.