Very very expensive council tax

[Ohnanawhatsyourname]

Hi all

In the process of buying a modest property that’s really run down and needs lots of work, have budgeted for that based on what I saw of it to date and getting very detailed surveys done. Yes I know, great time to buy lol :( the mortgage rate is awful.

however - just discovered like an idiot that the council tax on the property is super high for the area, about £3k a year (all other properties in the area more like half that).

I’m already arguing with the seller as they had asked for a super high sale price and not taken into account the works needed (like asap) on the property. They wanted to sell as if it’s fully renovated and as if it’s a much bigger place when they haven’t done much needed work in genuinely 40 years. They’re not working off any valuation, just their general intuition.

Anyway is council tax something you can also use to justify a lower price on?! Just grates as can’t believe it’s SO high for this property.

Any advice much appreciated

I think you can get the local council to re evaluate the council tax but I’m more worried that you’re spending too much for a property that’s worth less! However, I think it’s based on the houses worth back in 1991, it’s square footage, it’s location etc.

Worried about that now too…!! It was my way of getting on the property ladder :( Did NOT expect CT to be so high :(

The vendor has zero influence over the council tax and realistically you can’t make a reduction in asking price for council tax. It’s all completely separate issues.

Council tax bands are set and if this property falls into one of the higher ones you have to assess whether you are prepared to pay the relevant band for the property going forward or not. Size, location, grounds all play a part together with which band it was set in originally.

Do also remember that if an extension has been put in, it’s not the current owner but the future owner that bears the future cost if the council move it into a higher price band once the sale has completed.

I don’t live in a large house but mine is 2.4K a year….just a stupid area with high council tax. I get the pain!

I don’t think the seller can do much about it, you can ask for it to be re valued by the council but first do your homework with local houses and current prices etc incase it doesn’t work in your favour

Was the band on the advert?

Are you certain, for absolute sure, that it is right? Are there literally no other similar properties nearby in the same band?

Yup - it wasn’t in the advert :( initially the agent said “it’s typical for the area” and stupidly I was so focused on estimating the cost of repairs I didn’t investigate this :( so stupid!

I don't think council tax being high is something that gets you money off the house. Once you have a full survey done you can go back and say this and that is problematic. You'll have the evidence then.

Thank you posters :)

(Not that it’s good news!!)

Oh dear. You have been had.

Mycounciltax.org.uk is my go to for council tax amounts without having to wade through LA websites, fyi.

If you've just bought a property, and you think it's the wrong tax band, you can apply for it to be reassessed. (If you've been there for years you cannot )

If you compare similar sized properties in same postcode and they're all a band or two lower then I'd say a high chance it's an error and you can successfully get a lower rate by showing the council the similar properties in a lower band.

You can't ask for money off because the Council Tax is high.
I mean, if it is in a higher band, then you are arguing against yourself in a way, by there being an independent arbiter saying the property is worth more than others in the same authority., surely ?

They’re not working off any valuation, just their general intuition.

Is this a private sale then ? Not being sold through an EA ?

I’m already arguing with the seller as they had asked for a super high sale price and not taken into account the works needed (like asap) on the property

Well surely you offered what you felt it was worth in the first place, having looked at the particulars and viewed the property ? If you didn't feel it was worth the asking price, then presumably you offered below the asking price?

I am aware that surveys can show up an issue you weren't aware of, but the way I am reading your OP doesn't say anything about a hidden issue showing up later, it talks about it being clear work is needed. Then you would have taken that into account with any offer you put in.

If it's not worth what it's on the market for then the bank won't lend the money. So that may prevent the sale anyway. What has the bank said re mortgage? The council tax is based on size of property and bedrooms etc not on condition. It's a recurring payment and I would say if that's too much for you now then you need to think again about buying that property. The bank may prevent the sale anyway.

You can apply to have it reassessed, but a word of warning: most reassessments do not downgrade, they will either stick or raise it.

The place we’re in at the moment has eye watering council tax for F-all services and no chance of getting it dropped. We’re frugal as we can be otherwise, bar rent it’s our second largest bill and it’s infuriating. House next door has more people in it, more bedrooms, a significantly larger footprint and is a band lower but that’s down to when it was extended.

If I’m honest I think council tax calculations are bloody stupid - in a single street, you can have a 4 bed house with maybe 8 adults in it (HMO) and pay the same as a 2 bed with 2 adults and 2 kids in. Basing it on 1991 square footage is exceptionally outdated. Also given the pitiful size of many of the new builds cropping up, I’m genuinely struggling to see how they should ever be above a band C. But inevitably they will be.

Why are you buying this house again? It sounds like a mistake tbh seeing as you already consider it an overpriced money pit and you haven’t even bought it yet. I know it’s hard to walk away from things you’ve invested a lot of time and money in but seriously? Something better could come along if you are prepared to wait.

Sounds like a money pit to begin with, then an ongoing money pit with regards to CT.
How much taxable income do you need to earn to pay the CT? £4.5k?
As @Twiglets1 says, time to reconsider.
You even describe it as ‘modest’ yourself. Why is it so expensive then?

Also different areas charge different rates for the same band. I moved from Brum to Shropshire which is more expensive and it is so expensive!

They certainly do - look how cheap Westminster council is despite the number of million pound plus properties there. Half the price of Hackney, for example.

https://www.londonstranger.com/living-in-london/choosing-where-to-live-in-london/london-council-tax-comparison-guide

Council tax varies greatly due to area, check out Westminster rates, extremely low. We used to live in an upmarket area, band E, just 10mins down the road not such a desirable area Band E, was more expensive, properties were cheaper, same Council. You can ask for revaluation,but this will also include neighbouring properties, CT banding could go up or down. I agree with PP not a reason to expect a reduction in price from the vendor.

In this market, if you can’t safely afford to buy, you should pull out and allow the seller to re market.

You can offer whatever you want, what you think it's worth to you. If it is worth less to you because of anomalously high council tax then it's a completely valid reason to offer less, in the same way as it would be if you found out it had any other larger bills than expected for heating, ground rent, service charge etc. If you intend to stay in the house a long time it could cost you a lot of money over what you might expect, so it is absolutely reasonable to factor it into the value that the house is worth to you and the price you are prepared to pay.

The vendor might not accept that as a reason though, as it is not particularly usual (because most houses are appropriately rated), so I would be prepared for some pushback and a reasonably high chance of refusal/consequences from their side.

You could investigate the procedure for getting it rebanded and talk to someone at the council about the procedure and the likelyhood of it succeeding. They may have a form for you to fill in, and if they are helpful they may have a quick look see at the details and let you know what they think. The more anomalous the rating (say it is rated a D and should be an A) I would imagine the higher chance you would have of getting it rerated at least partially towards a lower value, but you really need to know what the criteria are.

If you cannot afford the CT then I think you cannot afford the property x

Sounds like you've made an offer on a house you can't afford. The sellers can sell it for whatever they want, it's not your right to get it for less, no matter what you think it's worth.

Council tax bands vary massively across the country. Because the bands are based on 1991 property prices you get much bigger houses in poorer area at lower bandings than in more expensive areas. And each area will have different amounts of property in each banding so the rates per band will vary hugely.
I've lived in:
3 bed terrace - band A
1 bed flat - band B
4 bed detached - band F
6 bed semi - band C