Council tax 'puts pressure on tenants'

News Category: Management

Tenants in rented accommodation in the UK have seen their council tax bills increase by three times more than inflation in the last decade, a new report suggests.

Research by Halifax found that the average council tax bill in the 408 billing authorities has increased by 91 per cent since 1997. In the same period, retail price index (RPI) inflation has risen by just 31 per cent.

Now, the typical council tax bill for a rented property in the UK is £1,078 - in 1997, the figures was £564.

Landlords and letting agents looking to acquire property with low council tax levels for their tenants should avoid Richmond-upon-Thames - council tax here is typically £1,665.

"Council tax bills have increased significantly faster than either average earnings or retail prices over the past ten years. Bills diverge across the country," explained Martin Ellis, chief economist at the lender.

"Growth rates over the last decade differ by a wide margin between billing authorities too."

Recently, ARLA revealed that 40 per cent of landlords look to invest in property that is over 50 years old.