All residential property landlords in the district should pay business rates, says Canterbury City Council
Published: 12:52, 20 March 2017
A campaign to make all residential property landlords in the district pay business rates has been launched by the city council.
It says the owners, especially of students lets, are profiting at the expense of other local tax payers.
Now it has voted to lobby the district’s MPs and the government for a change in the rules.
It had originally been proposed to target owners of student houses but the council now wants to widen the net.
The move follows a review of the impact of students on the city which revealed the huge loss of income the council suffers from being a university hub.
It is something which has angered many residents who complain that students create a lot of work for the city without paying because are exempt from council tax.
"It’s been a contentious issue for a long time. I’ve always thought that landlords with several properties are running a business and should pay rates," said Cllr Terry Westgate.
He was speaking at a meeting of the council’s community committee last week, where he added: “Students should be exempt from council tax but landlords should contribute.
"The council is going to lose a great deal of money in the coming years and with so many houses in multiple occupation in Canterbury, we are going to be in real trouble."
But he asked for the net to be widened to all residential property landlords who run houses in multiple occupation - known as HMOs - and the committee agreed.
Four in five of the city’s privately rented homes – about 3,800 – are occupied by students, but landlords only have to pay council tax when the properties are empty.
But the extra government funding given to local authorities to cover the shortfall is being heavily cut.
The loss of council tax income in the district is calculated at £5.5 million - which would be shared between the county and city councils, fire service and police. Canterbury is estimated to be missing out on £694,000.
Councillors learned that Liverpool City Council has already written to the Government, called on it to impose business rates on student landlords.
Cllr Westgate said the issue “needed addressing” because students placed a heavy burden on the council with tasks like rubbish collection.
"Local residents often say to me it’s not fair and they feel like they are subsiding landlords,” he said.
Cllr Jean Butcher agreed adding: "They are running businesses and making a huge profits but not contributing."
Now members of the council’s community committee have authorised the council leader to write to MPs Sir Roger Gale and Sir Julian Brazier and the government for a change the rules.
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Gerry Warren