You are thinking of buying a park home. Because it offers an affordable housing option in the UK. Before purchasing the park home, it’s important to understand the concept of council tax for park homes. Because the park home is treated as a caravan by the local council. So in this article, we discuss about paying council tax on a park home.
What is a park home?
A park home is a manufactured home. It is built in a factory and then moved to the site. Mostly, park homes are set up semi-permanently on a residential site and used for holidays. Park homes are also known as mobile homes.
Do you pay council tax on a park home?
The short answer is yes. Council tax applies to park homes since they are classified as residential properties. However, park homes have lower council tax bills due to their low property prices compared to traditional houses. The exact amount is decided by your council tax band.
Your local council sets council tax band based on the value of your property. Park homes are valued separately from regular houses because they are considered a non-domestic property. Therefore, they have lower council tax bands.
To determine your council tax bands, the valuation office will assess your park home based on things like its market value, size, age, and location. You’ll receive a bill for the annual charges at the start of the financial year in April.
How much is council tax on a park home?
Council tax on park homes can vary depending on the location and value of the property. Your local council determines the tax band for each park home based on its open market value. Then the tax band determines your annual council tax bill.
Band A is the lowest tax band for homes valued up to £40,000. Band H is the highest for homes valued at over £320,000. Your local council sets the specific tax rates for each band annually. On average, you can expect to pay between £1,200 to £4,000 per year for council tax on a park home. But the exact amount depends on which tax band your park homes fall under.
Some tips to keep in mind:
- When you buy a park home, check with the council to determine which tax band it is in before you buy.
- If you think your park home has been incorrectly banded, you can appeal to have it reviewed. You will need to provide evidence, such as sales of comparable properties, to support re-banding it to a lower tax band.
- Consider paying your council tax on a monthly basis. It will reduce the burden of paying the council tax. Most councils offer payment plans with no added fees.
Council Tax Exemptions and Discounts for Park Home Owners
As a park home owner in the UK, you may be eligible for certain council tax exemptions and discounts.
Exemptions
If you meet certain criteria, then you may qualify for a full council tax exemption on your park home. Two common exemptions for park homeowners include:
- Empty property: If your park home is unoccupied and unfurnished, then you may get an exemption. You’ll need to apply to your local council for this.
- Disabled person: If you or someone living in your park home is severely mentally or physically disabled, then you may qualify for an exemption.
Discounts
Even if you don’t qualify for a full exemption, you may be eligible for a partial council tax discount on your park home. Two types of discounts are available include:
- Single person: If you are a single person, living in a park home, you can get a 25% discount on your council tax bill.
- Low income: If you have a low income, then you can claim Council Tax Support for the government. You can also get a discount on the pitch fees through Housing Benefit, Pension Credit, or Universal Credit.
Other monthly expenses of living in a park home
Living in a park home in the UK comes with more monthly expenses beyond just paying council tax. Some of the other costs include:
1. Pitch Fees
Pitch Fees are charged by the park owners for the land where your park home is situated. The price can vary depending on your park owner. But you can expect £150 to £300 per month for pitch Fees.
2. Insurance
It’s a good idea to buy insurance for your park home. Park home insurance, also known as static caravan insurance. It can cover risks like fire, theft, flooding and storm damage.
3. Utilities
For utilities, you have to pay for water, gas and electricity each month. The price will depend on the size of your park home and how you use it. However, the cost of utilities will be less compared to a normal house. Because parks buy these products in bulk at a commercial rate. Also, new park homes are well-insulated and need less energy.
4. Entertainment
Entertainment is needed to enjoy life. You can take broadband services, and cable TV packages from BT or Sky. While it’s not an essential expense, still important for quality of life.
Conclusion
Well, there you have it. A brief explanation of park home council tax. Make sure you understand which council tax band your park home falls under. If you believe your council tax bill is high, you can challenge it. Also, check if you’re eligible for any discounts or exemptions.
You can also check
- Weekly mortgage payment: Is it worth it?
- Is 26k a good salary in the UK
- How much does it cost to clad a park home?
Disclaimer: All the information provide on this article only for informational purposes. Please do your own research before taking any financial decisions.
