Council tax bands are used in the United Kingdom to determine how much each household should pay in council tax. Paying your council tax bill is a legal obligation for residents in the United Kingdom, and failure to pay can result in serious consequences. Therefore, it is crucial for every homeowner and tenant to understand the calculation of council tax and the role of council tax bands. Let’s take a look at what council tax is, how it is calculated, and how to pay it.

What are council tax bands?
Council tax bands are categories used to assess the value of residential properties for the purpose of levying council tax. Each property is assigned to one of these bands, ranging from Band A (the lowest value) to Band H (the highest value). Your council tax band is determined by the market value of your property on a specific date. In England, it is based on what the value of your property was on April 1, 1991.

What is council tax used for?
Council tax revenue funds a wide range of public services and infrastructure that benefit residents in the area. Some of the key areas where council tax funds are typically allocated include:

• Local government services
• Education
• Social care
• Waste collection and recycling
• Transportation
• Public safety
• Parks and leisure facilities
• Housing services
• Emergency services

Different council tax bands and their costs
Here are the council tax ranges for England based on your property value*:

A: Up to £40,000
B: £40,000 - £52,000
C: £52,000 - £68,000
D: £68,000 - £88,000
E: £88,000 - £120,000
F: £120,000 - £160,000
G: £160,000 - £320,000
H: More than £320,000

Factors that affect council tax bands
When assigning a property to a council tax band in the United Kingdom, several factors are taken into consideration to determine its assessed value. One of these factors is the location of a property, as those situated in areas with higher property values or better amenities may be assigned to higher bands.

The size and type of the property, including the number of bedrooms, bathrooms, and overall floor space, are also taken into consideration. Larger properties, or those with additional features, such as garages or outbuildings, may be assigned to higher bands.

Additionally, the age and condition of the property can influence its assessed value. Older properties or those in need of significant repairs are typically assigned to lower bands, while newer or well-maintained properties may be assigned to higher bands. Any alterations or improvements made to the property since the valuation date may impact its assessed value and council tax band. Whether the property is used residentially or commercially may also increase its tax band.

Council tax for newer properties
Council tax on newer properties in the United Kingdom is calculated in a manner similar to that of older properties, but with some differences in the assessment process. For newer properties, the valuation date used to determine the council tax band is typically the date of completion. In some cases, comparable properties in the area may be considered to establish an appropriate valuation.

The quality of construction materials and finishes used in newer properties may contribute to their higher assessed value compared to older properties. Features such as high-quality fixtures, fittings, and construction techniques can impact the property's valuation. Properties built by reputable developers known for constructing high-quality homes in desirable locations may command higher market values, affecting their council tax bands.

Paying your council tax bill
Most people pay their council tax in 10 instalments over a 12-month period; however you can pay in fewer instalments or even in one annual lump sum if you wish. There are several ways to pay your council tax, including via direct debit, online payment, or telephone payment. If you prefer to pay by post, you can send a cheque payable to your local council along with the payment slip from your council tax bill. However you pay, make sure you allow enough time for the payment to reach the council before the due date.

There are severe consequences for failing to pay your council tax bill. Your local council may impose additional charges or penalties for late payment, and these charges can accumulate over time, increasing the amount you owe. If you continue to refuse or neglect to pay your council tax, the council may eventually apply for a committal warrant, leading to imprisonment in extreme cases.

If you are struggling to pay your council tax bill, you should openly communicate this with your local council. They may be able to offer support or assistance, such as setting up a payment plan based on your financial circumstances.

 

When diving deep into the world of property, it can sometimes feel hard to resurface. Constantly making payments month after month can become exhausting and may seem never-ending, but paying off your mortgage can truly be accomplished quicker than you assume.

We are here to shine a light on your mortgage this summer with simple tips on how you can accelerate your mortgage.

The benefits of accelerating your mortgage

 

A mortgage usually lasts around 25–40 years, depending on how much your home deposit was and what you are willing to pay back per month. So, the longer you stretch your mortgage term, the cheaper your monthly repayments will be but the longer you will be paying back your mortgage. We recommend overpaying on your monthly repayments to shorten your mortgage loan term.

Reduce your interest rates
By overpaying your mortgage, you are far better off in the long run as you save on your interest rates and shorten your overall loan term. The interest is added onto your mortgage loan daily, so by paying more quickly you reduce the amount of interest added. Once you finally pay off your mortgage, you will also receive access to better mortgage deals in the future with other properties, as you have proven reliable for repayments.

How does it work?
Accelerating your mortgage occurs by overpaying on your monthly repayments or by performing weekly repayments rather than monthly. Before accelerating your mortgage, you need to check with your lender about the terms of your mortgage agreement and make them aware of what you are doing. This is because your lender could easily mistake your overpayments for reducing your next monthly repayment, when in fact you want to reduce your overall term.

If you are on a fixed-rate mortgage, it is harder to achieve acceleration as you are typically only able to overpay by 10%.* Sometimes it can be better to remortgage your home to escape a fixed-rate mortgage and get a variable-rate mortgage. This allows you to overpay your mortgage without any early repayment charges. By paying more each time or by paying weekly, you reduce your outstanding mortgage quicker, resulting in a faster decrease in the amount owed on your mortgage.

Is it worth it?
If you were to overpay your mortgage by just £100 a month for a year, it would allow you to take off nearly 3 years of mortgage repayments. This is all due to the interest charge added to each payment, as mortgage interest is calculated daily.

It is worth paying that little more or changing your mortgage payments to weekly, as this leads to less overall interest accumulating on your remaining balance as you are paying off your loan quicker, reducing the term of the mortgage. Weekly repayments are where you change to paying the monthly agreed amount weekly, split into four payments a month rather than one. This will lead to 52 payments a year rather than 12, allowing you to achieve financial freedom sooner.

What happens when I pay off my mortgage?
When you have finally paid off your mortgage sooner than you knew was possible, you will have a new sense of pride. You will now outright own your property and feel proud while noticing extra disposable cash each month.

Accelerating your mortgage can make a huge difference in your overall financial freedom throughout your life. By overpaying or making more frequent payments, it can take away a large amount of interest added to your owed amount. Speak to your lender to discover your options and see how you could gain financial freedom this summer.

 

The spring 2024 market is running more smoothly than this time last year, thanks to a more stable market. So, if you decide to move, the question has to be asked; Could it be your easiest move ever?

Homemovers are moving the market forwards
This time of year is always busy. The UK property market is moving forward at a better pace than many anticipated. When buyers find a new home for sale that they like, it’s another transaction to add to the tally and when their old home is bought by another buyer, this multiplier effect carries on right down the chain. This drives the entire market forward, bringing more buyers to your door and more choices of homes to your inbox.

The market has a lot going for it
The facts speak for themselves: stamp duty is favourable at 0% for your first £250,000.* Mortgage rates are improving and, in a historical context, are very favourable, and equity levels are strong, yet house prices are at reasonable and affordable levels. Then there is the standard of properties themselves, which have received a lot of love and attention due to the home improvement frenzy that still continues.

Sales agreed are increasing
In March, sales agreed were 13% higher than the previous year.** Homes are appearing on the market well-prepared by their eager-to-move owners. Gleaning lots of tips and hints on preparing their homes for sale and benefiting from years of hard work and renovations, as well as paying off the mortgage as the value of their properties increases, means equity levels are good. It’s perfect moving weather for packing up and making a fresh start and this is also true when you are viewing properties.

Buyer demand is growing ever stronger
In March, buyer demand was 8% above the same time last year,** due to slowing inflation, and increasing wage levels. The UK property market is a rich and textured place. Demand is increasing on all fronts, from first-time buyers taking advantage of up to 0% stamp duty up to £425,000,* and the 5% deposit Mortgage Guarantee Scheme to cash buyers, and home movers at the higher end of the market. Each property has its own personality yet can be adapted to suit yours. From stunning eco-homes to listed properties, homes often choose their owners.

Agents are making moving easier
The old saying that moving home is one of the most stressful things you can do is losing some of its street credit. Moving does not have to be stressful, but it can be, if the agent you choose is not up to scratch. Good agents attract good vendors, nice properties, offer great listings and can recommend other property professionals that will make the entire process run smoothly. Sometimes it’s being prepared for the unexpected. If a sale falls through, a good agent’s database of buyers will quickly get your sale moving again.

gov.UK*

Rightmove **

 

One of the joys of owning property is the doors of opportunity it can open. Even if you have no intention of renting out your property, there are lots of things you can do to make a bit of money from it. So here are a few ideas to inspire you.

Get a lodger
Taking in a lodger is a quick way to get some extra cash to pay those bills. The first £7,500 you make will be tax-free thanks to the government’s Rent a Room scheme. Interestingly, you do not have to be a homeowner to take advantage of this scheme, but the room must be furnished. It’s important to inform your home insurance provider, just in case. Doing this can work because it may offer a lot of flexibility for you and any potential lodgers.

Rent out office spaces, outbuildings, or your driveway
Depending on the size of your location and how much extra income you are interested in earning, this will help determine what you are going to do. If you have large outbuildings, you have more options to rent out, without anyone entering your home. Whether they rent storage space, office space, a garage, or a workshop, it’s important to make sure the facility is well-maintained and compliant. If your home is at the edge of a big city and near a train line, it could be ideal for renting out your driveway.

Let your property
Letting your property is a great way to build a secure and prosperous financial future. Using a letting agent makes the process a lot smoother with a lot less effort. You can choose which level of managed service you like. For example, you may take care of maintenance yourself while your letting agent collects rent and finds referenced tenants. You may prefer a round-the-clock maintenance service for your property with a fully managed package. Whether you make a profit on the cost of your mortgage or not does not minimise your long-term return on investment.

Home improvements
As you pay off your mortgage and your home increases in value over the years, it’s earning money. You can accelerate this by improving it. Fitting a new kitchen can add up to 15%*** to the value of your home. A new bathroom may add 3%-5%.*** Simple things can also make a difference. Decorating, improving lighting, and the energy efficiency of your home are also effective ways to add value. Fitting solar panels, and selling excess energy back to your local electricity board, is another canny way to make a few extra pounds from your home.

Sell up; the market will help your home pay for itself
With the UK property market performing well, you could move and make a profit. In January 2005, the average house price in the UK stood at £150,633, in June 2023, it increased to £287,546.* Figures released in March, by Rightmove, suggest the average price of newly marketed properties was £368,118.** You could cash in on this equity to move, improve, or buy a second investment property. According to Zoopla, average sellers in the UK made £74,000 profit in 2023.*** With lowering interest rates and homemovers returning to the market in large numbers, the outlook remains positive.