Town hall closes student council tax ‘loophole’ that could have been costing Islington up to £500k a year

Cllr Andy Hull: Loophole closed. Picture: Islington Council

Cllr Andy Hull: Loophole closed. Picture: Islington Council - Credit: Archant

The town hall has closed a council tax loophole exploited by landlords who rent out student digs.

There are 4,000 student flats in accommodation blocks in Islington. These are exempt from council tax requirements, as students don’t pay council tax.

But the council said landlords are increasingly letting these flats over the summer holidays, when the students are away, to tourists and other visitors.

As the students aren’t living here during this time, the flats are liable for council tax. But to close the loophole, Islington has now introduced policy requiring landlords to provide occupancy detauls for every week of the year.

If 4,000 flats are rented out during the 10-week summer break, the town hall would rake in nearly half a million pounds extra in council tax.

Finance leader Cllr Andy Hull said: “Closing this loophole means the correct levels of council tax are collected, which helps pay for services in Islington.”