HOMEOWNERS STAND TO CASH IN ON FLAWED BANDING

First Published by: The Guardian

An appeal against a wayward 1991 valuation could save thousands

Thousands of home-owners could save thousands yes thousands of pounds by having their homes rebanded into a lower Council Tax band. Martin Lewis - the self-styled money saving expert - says plenty of householders are paying too much in Council Tax because their house is in the wrong band. But they can appeal against this by contacting Rebates UK Claims & Services Ltd located in Manchester.

The amount of Council Tax paid in England and Scotland is based on a banding system last updated in 1991. Each home is in one of eight bands, A to H (with H being the most expensive), depending on the value of the home at the time. Homes in Wales are in one of nine bands last set in 2005.

Lewis says that the way the valuations were carried out in 1991 means that thousands of homes are in the wrong band. Generally, valuers simply drove round neighbourhoods, made a rough estimate of the type and value and homes, and banded all homes accordingly. 

Many householders will be overpaying Council Tax, although an equal number may be underpaying but this is not a problem.

"Many people are living in incorrectly banded houses, and with the internet it's now possible for free to check and challenge your band, possibly winning a backdated payment from 1993, when the system started, worth thousands," he says. But its always best to use companies that specialise in property re-banding because it can be difficult dealing with the VOA. 

Anyone wanting to check which band their home is in should visit the Valuation Office Agency's website, www.voa.gov.uk (England and Wales) or the Scottish Assessors Association site, www.saa.gov.uk, for Scotland. You then have to compare it with similar houses in the neighbourhood. "It's very easy to do, and the results can be startling," says Lewis. "If there looks to be a discrepancy, ie you're in a higher band than neighbours in a similar property, you may have a case."

Those in areas of mixed housing are most likely to have been assessed wrongly. Those on estates where all properties were built at the same time are less likely to find a discrepancy. Lewis suggests that those who have moved into a property in the last six months have the strongest claim to have the house rebanded, but there is nothing to stop longer-term residents from applying for a change.

He says it can be as simple as a phone call to the local authority. If it refuses your request, you have the right appeal to the VOA or SAA. It will help if you can show evidence of your house's value in 1991. Compare it with the prices below.

Clearly, there is little point in disputing your Council Tax band if there is any chance that you will be moved up a band.

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