Student Housing and Council Tax

At present houses occupied wholly by students are not liable to Council Tax.

Whilst I understand the orignal reason for this exemption, in places like Loughborough, it is difficult to see why landlords potentially making healthy profits from student tenants are not paying any council tax. They are effectivly run as a 'business'. They do therefore of course pay taxes on rent profits from students but I feel that Council tax, like other business, is part of the business proposition/costs.

I have raised this issue in meetings, on the floor of the House of Commons and in written Parliamentary Questions (see Hansard on the Parliament page for further details). This was also covered by the BBC on 18th May 2003 on Radio Leiecster and East Midlands Today.

It is of course important to note that it is not Charnwood Council taxpayers who cover the lost income - the Borough Council gets a larger central government grant which covers exempt properties.

I will continue to press on this issue as I feel that landlords effectively running businesses should be paying local taxes as part of that business.

I understand the concern raised by some students that they would have to pay the Council Tax as it would be passed on by the landlord. Whilst I understand the concern I do not feel it is right to allow a business to avoid tax because of this alone. There are ways to ensure that it is not students on low incomes who pick this up - through the market and perhaps through regulation.
At present it other residents who are subsidising this status.