What are my rights if I buy a home and the council tax band rises?

We are looking at properties with a view to moving house and are paying careful attention to what council tax band they are in, as we want to try and keep any future tax payments to a manageable level.

If a property is marketed by an estate agent as being in band C, for example, what legal rights, if any, do we have to ensure that when we purchase the property and move in, the property will remain C-banded and not be raised to a higher band by the local council?

I ask this because when we purchased our current property it was marketed as a D band, but was raised to an E band by the council the moment we moved in. Keith Carey, Faversham

Jane Denton, of This is Money, replies: Council tax bands matter because they determine how much council tax you pay.    

Council tax band valuations are based on the location and value of a property at a specific point in time, namely on 1 April 1991 if in England. 

Properties are banded on the same basis, including any residential homes bought under discount schemes, like Right to Buy. 

For residential properties in England, there are eight council tax bands, ranging from A to H. The higher the band, the more council tax you pay. Different thresholds and bands apply in Northern Ireland, Scotland and Wales. 

In England, a property in council tax band C has, as of 1 April 1991, a valuation of between £52,000 to £68,000. 

It’ll come as no surprise to you to hear that the council tax band system is much maligned and often viewed as antiquated.  

There are grounds for challenging a property’s council tax band and valuation, though these are limited. 

The prospect of legal redress against your estate agent or others if your council tax band changes is even more limited. 

Nyree Applegarth, head of property litigation at Higgs LLP, says: Unfortunately, when purchasing a property, there is no legal guarantee that the council tax band will stay the same after your move. 

The fact it has been advertised as being in a particular band would not give you any redress against the estate agent if it later changes. 

Although bands are based on a property’s value, as of 1991 in England, some criteria can change this. 

A change can be spurred by a change in the house’s size, for example, if the house has been extended or has been divided into smaller flats, it may move to a higher or lower band. 

Your property’s band might also be affected by the rebranding of similar properties nearby. Some councils are very hot on this, and if they know that they have given planning consent for an extension for example, once that property is sold, they will often write to the new owner to say they want to inspect, with a view to re-banding.

If your council tax band is changing, the Valuation Office Agency (VOA) will send you a letter confirming this.

If, during the conveyancing process you are made aware that the property has been extended or altered, you should factor in that the council tax banding may change after you buy the property.

In terms of legal rights, you can appeal the decision within six months of the VOA telling you about the change in your council tax band. 

You must complete an appeal form, providing supporting evidence that justifies your disagreement with the VOA’s assessment. You must supply evidence, which can be found on the Government website.

To put it briefly, you must show evidence that five similar properties, in terms of size, age, design, and type, in the same area have a lower council tax band.

Additionally, if in England, you must show that the price of your property in 1991, does not fit the council tax band that it is currently in, and that no major changes have been made to the house in terms of design and size.

Upon registration, both you and the council have four weeks to submit additional evidence. 

The appeal culminates in a Valuation Tribunal hearing, which is impartial and held remotely. 

During the hearing, both sides present their cases. You will be asked questions and you may also ask questions. The Tribunal’s final decision is issued within one month post-hearing. This service is free and does not require legal representation. They are also made to be as informal as possible for judicial proceedings to make people feel at ease.

If you are successful in your hearing, the tribunal will order the VOA to change the council tax band list, which will normally take around two weeks to amend. 

If you are unsuccessful, there will be no change. Unfortunately, council tax is usually at the discretion of the council, and homeowners cannot change their bill because they are unhappy.

If you cannot pay your council tax or are struggling, you can contact the council who can help you to spread out payments or support with discounts or reductions. 

Michael Zucker, of estate agency Jeremy Leaf & Co, said: Council tax bands are based on the market value of each residential property, remarkably, as of 1 April 1991, but if subsequent alterations and improvements such as extensions or loft conversions have been carried out, then the Valuation Office Agency may consider it appropriate to place your property in a higher band.

It is possible that when you previously purchased a property earlier alterations were brought to the attention of the Valuation Office Agency and that this necessitated an alteration to the band.

When purchasing a property, it is a good idea to check the council tax band and the annual amount payable online rather than relying on information provided by the estate agent. 

The council tax payable can also vary greatly between different local authorities. 

If the property has been extended, then you or your solicitor should ascertain from the vendor whether the council tax band has been previously changed to reflect those improvements.

Given that council tax bands are based on historic values from 1991, there can be many anomalies. 

Substantial terraced Victorian houses in inner urban areas which were previously held in low regard may be in a much lower council tax band than a smaller semi-detached modern house with a garage in the suburbs, even though the current value of the suburban semi may be much lower.

The selling agent cannot guarantee that the council tax band will not change in the future as they have no control over this. 

It is up to you to do your own research and ascertain whether the property seems to be in the correct band by looking at the bands of similar properties and locations.