Our house has just been put into higher council tax band! Can they do this? We have lived here for 22 years

[Trampauline]

We live in a detached house. We received a letter just a few days ago from Valuations Office Agency. This states that "a previous owner made alterations to your home; we must include the additional value of those alterations in the band following your purchase". (The previous owner added a two storey extension in the late 90s). The letter states that "if your band increases, we will send you formal notification and also notify the Council who will revise your bill".

Today we have had a letter from the Council re council tax and we have been put in the next band up. How can they do this? I know how it's come about. It's thanks to a neighbour. A new house has been built two doors down on garden land. The new owners challenged their council tax band. They asked us and other neighbours what band we were in and how many bedrooms we had.

Looking on the gov.uk website it says that if a house has been improved/extended the council will put an improvement indicator on the property. This will be picked up next time the property is sold and the council tax band will be re-evaluated by the Valuations Office. So how can we be hit with this now? this really does not seem fair. Help!

What's the difference in price for your council tax bill? It can't be that much more per month?

Yes this.

Not sure why you a looking a gift horse in the mouth? You've been given a 20+ year discount, that's pretty good going!

So basically one neighbour accidentally or purposely fucked it up for everyone on the street? Oh no🫣 I’d hate to be them!

The whole council tax system is crazy anyway, we live in the NE in a 4 bed house that is worth far less than my BIL's two bedroomed flat in London but pay much more council tax. If it's supposed to be based on the value of the house that's completely out of whack because of the house price differentials across the country. And it's not really based on services used either because 4 people in a 2 bed flat in London could easily use more services than a single person in a 4 bed house in the NE.

Yes, this happened to us, in more or less exactly the same way as you. We knew it could be a possibility as we were a lower band to other houses on the street and it had been extended.

You have to remember that some house bands have not been reassessed since it's inception over 20 years ago.

In fact Google tells me council tax banding was launched in 1993 based on the value of the property in 1991.

Some councils will be better at updating property prices / bandings than others.

My understanding is that they cannot just revalue your property for no reason. However sometimes it can be changed if similar houses nearby are changed which is what has happened to you.

Personally I think everyone needs to strap in, we're in for big shocks and a bumpy ride. There aren't many places Labour (or the next government) can quickly and 'easily' raise money. Councils are going bust seemingly by the day. I think there will be a mass rebranding as a money raising exercise and because it will hit everyone it will be deemed 'fair' in reality it'll hit the squeezed middle hardest (due to how they rebrand). It could also trigger a bigger problem whereby older people in large houses simply cannot afford to pay their council tax.

@Trampauline this is correct! only when a house has been sold, improvements and extensions carried out by the previous owner will result in the recalculation of council tax banding! It means that a house 1 can be paying the same council tax as neighbour house 2 for years after neighbour 2 has extended and added 3 bedrooms!!! that is not fair. i feel that council tax should be recalculated after each extension has been built.