Renters in shared housing stand to save a significant sum of money after the government announced it will end the practice of banding individual rooms in shared houses separately for council tax purposes,

Ending the practice of forcing tenants of shared housing to foot large council tax bills is also welcome news for landlords, especially those that let room inclusive of the levy.

As a result of this announcement the National Residential Landlords Association (NRLA), which has long campaigned for change in the approach to council tax valuation of HMOs, estimates that the average HMO tenant currently charged council tax on single rooms stands to save up to £1,000 a year.

Ben Beadle, chief executive at the NRLA, said: “We are delighted that the government has listened to NRLA and others and will end the unjust practice of charging council tax on individual rooms.

“Not only will it save tenants money, it means landlords will once again be able to let rooms inclusive of council tax, making it easier for renters to budget.

“We look forward to the necessary changes being implemented without delay.”