Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, I have laid the Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (Wales) Regulations 2026 before the Senedd.
These Regulations follow our 2024 consultation on proposals to change how Houses in Multiple Occupation (HMOs) are valued and banded for council tax, and to confirm that the owner remains liable rather than the occupants. The summary of responses, published in August 2025, supported restoring the longstanding position that HMOs should generally be valued as a single property, aligning Wales with England.
In recent years, some HMOs have been valued on a disaggregated basis, with each unit banded separately and occupiers billed individually. This has created inconsistency and administrative complexity. The Regulations will ensure HMOs are valued as a single property where appropriate, providing clarity for councils, landlords and households, and ensuring liability remains with the owner.
The Regulations will come into force on 3 June 2026, apply to both licensed and unlicensed HMOs, and will not operate retrospectively. Owners of HMOs previously assessed on a disaggregated basis may make a proposal to the VOA to amend the valuation list.