Who has to pay rates?

Most home owners and tenants in Northern Ireland have to pay rates. Failure to pay rates can lead to fines or imprisonment, or even the loss of your home.

You don’t have to own your home to be liable to pay rates. Rates are generally charged to the occupier, i.e. the person living in the property, even if you are only renting it.

I own my home
I rent from a private landlord
I live in social housing

I own my home

You will usually have to pay rates if you own a home in Northern Ireland. Your rate bill is calculated by Land & Property Services and will be posted to you in March each year.

The amount of rates you pay depends on the capital value of your home and your entitlement to housing benefit. It is not easy to work out how much rates you will have to pay. If you want to learn about rates calculations, read How much will I have to pay.

When you receive your rate bill, you can choose from several ways to pay. Keep in mind that failure to pay rates can lead to fines or imprisonment, or even the loss of your home.

If you are planning any improvements or extensions to your home you will need to notify the Land & Property Services, as this will likely change the amount of your rates. You should inform Land & Property Services if you are moving home. Your rates liability ends when you vacate your property.

I rent from a private landlord

Private tenancies, tenancy agreements or statements of tenancy terms should specify who is responsible for paying the rates. It's essential that you know who is legally liable for paying rates on the property. If you're legally liable you should get the landlord's consent to make payments directly to Land & Property Services, to avoid any confusion.

In most cases, rates will have to be paid by the tenant, as you are living in the property. However, rates are usually covered in the rent you have agreed to pay. The landlord should not ask you for additional payments to cover the rate bill.

If the rates aren’t covered in your rent, the landlord must tell you this. Any additional amounts you will be required to pay towards the rates should be included in your statement of tenancy terms, as well as your rent book.

In certain circumstances you may not have to pay rates if you are renting privately. For example, if your full rent is paid for you through housing benefit, then your rates may also be included in your housing benefit entitlement.

If your landlord receives rate relief, the law says this discount must be passed on to you. You will be contacted by Land & Property Services if your landlord is getting discounted rates. It is up to you to agree a new level of payment to your landlord.

Not all private tenants are responsible for paying rates. The landlord who owns the rented accommodation is liable to pay rates if:

the NAV of the property does not exceed £750;
the capital value of the property does not exceed £55,000;
the rent is collected at intervals shorter than quarterly or the tenancy agreement does not provide when the rent is payable –AND either the NAV is under £1,590 or the capital value is under £150,000;
separate parts of the property are let out as apartments or lodgings;
the property is in multiple occupation (e.g. accommodation shared between 3 or more non-family members).

Even if your landlord is liable to pay rates under these criteria, s/he may not have to do so if you agreed and signed a contract or a tenancy agreement that makes you responsible for the payment.

In some circumstances, the landlord may be able to recover the amount paid from the tenant. If you’re not sure of your rights in this situation, seek specialist housing advice.

If you believe that your landlord should be paying for the rates, but is charging you instead, seek help from an advice agency in your area.

I don't know where the owner is

Private tenants don’t always know where their landlord lives.

If the whereabouts of the landlord is unknown, or you don't tell Land & Property Services your landlord's name and address, you will have to pay the rates for the property.

In these circumstances, you may be able to deduct the amount you paid in rates from your rent.

I live in social housing

If you rent from a housing association or the Housing Executive, you will generally have to pay rates. The rate amount is normally included in your weekly or monthly rent bill. You will be advised once a year of any changes in what you owe.

The amount of rent and rates you pay will depend on your entitlement to housing benefit. If your full rent is paid for you, your rates will also be paid. Your housing association or the Housing Executive District Office will decide if you have to pay rates yourself, or are entitled to rate relief.

For further information on payments of rates, contact Land & Property Services.