Council tax is one of the costs involved in renting a property – but do landlords pay council tax or tenants? Working out who’s responsible for the bill can sound complicated – but it might be easier than you think and it has been simplified through the Renters’ Rights Act 2025. Here’s what you need to know about tenants, landlords and council tax.
Is the tenant always responsible for paying council tax? It depends on who lives in the property, and how the tenancy contract is set up. Luckily, there are clear hierarchies in place and plenty of guidance from local authorities.
Southwark Council covers many rental properties in Waterloo, Bermondsey, London Bridge or Borough. However, if your property is near a boundary, find out which borough you belong to. Sometimes the rules vary between local authorities, so it’s worth ensuring you follow the right guidance.
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Your council tax bill contributes to daily necessities like refuse collection, recycling and repairing local highways. Council tax also pays for emergency services like the police and fire brigade.
In Southwark, it maintains green spaces like Burgess Park and sports facilities like Southwark Athletics Centre for residents. Council tax also supports libraries and community-centred spaces like Southwark Heritage Centre.
Most Southwark residents’ council tax goes directly to Southwark Council. Then, a percentage goes to the Greater London Authority (GLA), and another proportion contributes to adult social care.
The table below provides an overview of the different council tax responsibility scenarios depending on property and occupancy type:
| Property/occupancy type | Usually responsible for Council Tax |
|---|---|
| Single tenancy | Tenant |
| Joint tenancy | Joint tenants – liability can be joint and several depending on circumstances |
| HMO | Landlord/owner |
| Empty property | Owner/landlord – discounts, exemptions or premiums may apply |
| All occupiers under 18 | Owner/landlord – under-18s are disregarded |
| Care home/refuge | Owner/operator rather than individual residents |
Council tax charges in Southwark range from £1,311.51 to £3,934.52 for 2026/27. The charges include the Southwark Council element plus the Greater London Authority precept and is paid annually or in monthly instalments, undergoing review each financial year.
The 2026/27 Southwark council tax charge bands are:
Southwark Council raised council tax by 4.99% for the 2026/27 tax year (comprising of a rise of 2.99% core + 2% Adult Social Care precept). The rise is in line with the national average rise of 4.9%.
So, how is council tax calculated? The charges are divided into bands based on the property’s value as of 1 April 1991. That’s not a mistake. By a quirk of the system, the 1991 values are still the baseline three decades later.
But they’re not the be-all and end-all. The council can change your property’s band if it’s been altered or another comparable property has been re-banded.
Who is responsible for paying council tax – the landlord or the tenant? There’s a hierarchy that decides who should pay:
The tenant will pay the council tax if there’s only one tenancy. If letting to a family or to joint tenants on the same tenancy agreement, they share responsibility for council tax obligations between them.
In houses in multiple occupation (HMOs), the landlord is liable for their private rental property’s council tax.
An HMO is a property where multiple households pay rent for shared facilities (usually bathroom, toilet or kitchen areas) and their private space, such as a bedroom or bedsit. Each person will have an individual tenancy agreement to occupy only part of the building.
The main changes introduced regarding council tax liability relate to the abolishment of fixed term tenancies. As all tenancies are now periodic, while an assured tenancy is still running, the tenant remains liable for paying the council tax.
This has removed uncertainty of how long the liability lasts after a tenant leaves a property on a fixed term tenancy. Previously, there was a grey area around liability for contractual vs statutory tenancies which the new regulations have removed.
Clarity has been provided that tenants are liable until the tenancy legally ends, which runs to the end of their notice to quit period or the notice period set by a Section 8 eviction notice. Even if the tenant moves out before the end of the notice period, they remain liable for council tax.
To summarise the new council tax liability under the Renters’ Rights Act 2025:
If the property is empty, landlords must pay council tax in the London Borough of Southwark. But in certain situations, the landlord is responsible for the council tax while tenants are in situ.
The rules come down to how the rental property is used, and who the tenants are:
Council tax exemptions may apply in some situations, though they are not granted automatically. Read on for the full details.
Read more about HMO licensing in Southwark here.
Landlords are typically responsible for paying council tax on empty properties, but the exact rules depend on local council regulations.
From 1 April 2025, Southwark Council introduced increased premiums on council tax for properties that have been empty for at least one year (previously two years):
Yes, landlords can include council tax in the rent, but this depends on the tenancy agreement. When it’s included, the landlord must pay it directly to the local council, and the tenant’s rent is adjusted to cover the cost accordingly. This arrangement is much more common for properties rented as house shares, HMOs (houses in multiple occupation), or serviced apartments – where it’s more common to see utilities and other bills bundled together in a single payment.
In such cases, it is essential that the tenancy agreement clearly specifies that council tax is included in the rent. Unless it’s clearly stated in the agreement, tenants need to assume that they are liable for council tax.
Occasionally, a landlord needs to pay council tax on more than one property. This can happen if several properties are vacant at the same time. For example, if your tenants have left the property and a new tenancy hasn’t yet begun.
Southwark Council offers council tax discounts and exemptions based on tenants’ personal situations and occupations. For example:
Tenants living alone can claim a 25% discount on their bill.
As a landlord, you can apply for a discount if your tenants are eligible. But reductions aren’t applied automatically; you’ll need to apply.
Check the Southwark Council website for full details of council tax discounts and exemptions.
If you are a landlord letting your property only to full-time students (studying a minimum of 21 hours per week), the property is exempt from council tax. To claim this exemption, an application must be sent through the Southwark Council website.
Southwark Council requires proof of study by uploading a student certificate issued by the place of study. This must include:
If there is a change to exemption eligibility e.g. a non-student moves in or the property becomes a mixed household HMO, the council tax liability can shift back to the landlord.
The tenancy agreement should clarify whether the tenant is responsible for the council tax. If the tenant needs to pay council tax, then unpaid bills are not the landlord’s responsibility. But if you’re a landlord who pays the council tax on your property, you must stay on top of those payments.
Contact Southwark Council immediately if you can’t pay because they may offer an affordable solution. If you don’t get in touch, the consequences can be severe.
In Southwark, you will only receive two reminder notices per tax year – miss a third payment, and the year’s outstanding council tax will be demanded in full. The next step is a court summons.
Depending upon your situation as a landlord, you might be liable for council tax. That said, most normal situations mean that the tenant pays council tax rather than you. It’s important to keep up with any changes imposed by the local council to ascertain your responsibility, and any amendments to the rules in 2025.
We’re here to support you with advice and expertise. It’s all part of our letting service. So, if you have any questions about council tax on your rental property, talk to us.
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Lee Whitelock
Director
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