Maxine Fothergill, owner of Amax Estates and Past President of ARLA, achieved a significant victory after successfully appealing Medway Council’s decision to impose council tax charges on two properties that had been left uninhabitable for over 20 years. The legal battle, which involved a magistrates’ court summons, has broader implications for landlords facing inflated council tax charges on properties in disrepair.

The Case Details

  • Properties Involved: Maxine purchased two neighbouring two-bedroom ground-floor flats in Rochester in June 2023, both of which had been left in a state of severe disrepair due to water and sewage ingress from defective balcony walkways above. The properties had been uninhabited for several years, which contributed to their condition.
  • Condition of the Flats: The flats had extensive damage, including:
    • Collapsed ceilings
    • Damaged floor joists
    • Wet and dry rot
    • Missing window frames
    • Theft of wiring and pipework
    • Vegetation growth inside the properties

Despite the flats being clearly uninhabitable, Medway Council demanded full council tax payment, later increasing the charges by 300% because the properties had been unoccupied for several years.

The Appeal

Maxine, who represented herself throughout the process, appealed to the Valuation Tribunal for England, arguing that the properties were beyond reasonable repair and incapable of being lived in. She contended that the structural damage, particularly from the defective balcony walkways, had made the flats uninhabitable and not financially viable for restoration.

The Tribunal’s Ruling

On 23 December 2024, the Valuation Tribunal ruled in Maxine’s favour, concluding that the properties should be removed from the council tax valuation list from the date of purchase, retroactively. The tribunal acknowledged the extensive structural damage and the inability to repair the properties in a reasonable manner.

The tribunal’s decision essentially recognized that properties with severe long-term structural issues—such as those caused by defective balcony walkways—should not be subject to council tax if they are uninhabitable.

Implications for the PRS

This ruling is a landmark decision, potentially setting a precedent for other landlords in similar situations, especially those who own properties with severe structural issues. It highlights the growing issue of unfair council tax charges on uninhabitable properties, which have been exacerbated by long-term damage and vacancy.

Key takeaways from the case include:

  • Uninhabitable properties that are beyond reasonable repair may not be subject to council tax, even if they have been unoccupied for an extended period.
  • Landlords should be vigilant and ensure that properties with severe structural issues are not unfairly taxed by councils, especially when the damage is beyond reasonable repair.

Conclusion

Maxine’s legal victory serves as a warning to councils to review their approach to council tax charges for uninhabitable properties and to ensure that property owners are not penalized for situations beyond their control. This ruling could also empower other landlords facing similar challenges, offering a potential route for appeal if they believe they are being unfairly taxed on properties in severe disrepair.