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HMO tax change to hit thousands of landlords

Hundreds of thousands of landlords face being hit with a stealth council tax rise after rental homes were quietly re-evaluated for the levy.

Large rental homes which are let room by room are being reclassified as multiple smaller properties. In a five-bedroom house, this means five sets of council tax will be due rather than a single charge.

Government figures show there are 500,000 of these so-called “houses in multiple occupation” in England that could be affected.

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