{"id":23657,"date":"2024-01-11T11:27:04","date_gmt":"2024-01-11T11:27:04","guid":{"rendered":"https:\/\/factcheckni.org\/?p=23657"},"modified":"2024-01-11T11:27:20","modified_gmt":"2024-01-11T11:27:20","slug":"can-northern-ireland-landlords-get-larger-rates-reductions-than-renters-and-owner-occupiers","status":"publish","type":"post","link":"https:\/\/factcheckni.org\/articles\/can-northern-ireland-landlords-get-larger-rates-reductions-than-renters-and-owner-occupiers\/","title":{"rendered":"Can Northern Ireland landlords get larger rates reductions than renters and owner-occupiers?"},"content":{"rendered":"\n
On 25 October in an article for the Belfast Telegraph<\/a>, journalist and policy expert Paul Gosling claimed that:<\/p>\n\n\n\n \u201cAs landlords, we are given a discount on our rates bill. <\/em>While tenants and owner occupiers may be paying their rates in full, landlords are given a 10% rebate, providing they pay their bills on time.<\/em><\/strong><\/p>\n\n\n\n \u201cThis benevolent attitude to landlords is a policy with an outcome. Back in 1996, there was almost no private rental sector in NI.<\/em><\/p>\n\n\n\n \u201c<\/em>Today, according to the official NI figures, it accounts for 13% of housing \u2014 the same as the Housing Executive and housing associations combined.<\/em><\/strong>\u201d<\/em><\/p>\n\n\n\n This amounts to two separate claims, both of which are backed by evidence.<\/p>\n\n\n\n Landlords who pay rates bills by a set deadline receive a 10% allowance off their total bill. Owner-occupiers and renters who are responsible for paying rates can also receive a reduction in their bill, albeit this discount (4%) is lower than the help for landlords.<\/p>\n\n\n\n Figures from the House of Commons Library indicate that 5% of NI households lived in privately-rented accommodation in 1996.<\/p>\n\n\n\n Official figures from the Department of Communities indicate that 13% of homes are now privately rented, compared with 9% under Housing Executive control and 4% administered by housing associations.<\/p>\n\n\n\n FactCheckNI contact Mr Gosling about his claim, and he pointed us towards various official data published by the House of Commons Library and various Stormont departments.<\/p>\n\n\n\n Mr Gosling suggests that \u201cwhile tenants and owner occupiers may\u201d pay full rates, landlords can get a 10% rebate provided they settle their bills in time.<\/p>\n\n\n\n Landlords are entitled to a 10% allowance on their rates bill, provided they pay before a given deadline.<\/a>. If they miss the deadline, landlords must pay the full amount.<\/p>\n\n\n\n It\u2019s also possible that tenants or owner occupiers will have to pay their rates in full.<\/p>\n\n\n\n On that basis, this part of Mr Gosling\u2019s claim is accurate. However, that\u2019s not the whole story, because tenants\/owner-occupiers can also lower their bills if they meet certain conditions.<\/p>\n\n\n\n In general, domestic ratepayers receive a 4% discount on their rates<\/a> if they pay in full by a given deadline.<\/p>\n\n\n\n There is further help with bills for pensioners or people relying on social security.<\/a> <\/p>\n\n\n\n FactCheckNI asked the Department of Finance why the two general reductions in payments are significantly different, 10% compared with 4%. A departmental spokesperson said:<\/p>\n\n\n\n \u201cThere are two separate reliefs to note. One is a discount; one is an allowance. <\/em><\/p>\n\n\n\n \u201cIn the domestic rating sector in Northern Ireland, a 4% discount is available for annual rates payments, if paid in full on or before the date stipulated on the rate bill. For owner-occupiers and those in rented for renters (when they are responsible for payments), this discount is 4%.<\/em><\/p>\n\n\n\n \u201cLandlords who are liable to pay rates to Land and Property Services (LPS) will receive a 10% landlord allowance on the total amount due if the bill is paid in full by 30 September or the date stipulated on the rate bill if issued after this date. Vacant properties that are not subject to Article 21 agent status can receive a 4% discount on annual rates if paid in full by the date stipulated on the rate bill.<\/em><\/p>\n\n\n\n \u201cThe two reliefs noted are not connected. Landlord Allowance recognises the landlords liability for all properties within their portfolio by making one payment for all rates due. The person responsible for paying rates on domestic rented properties depends on the property’s capital value, or if it\u2019s a house of multiple occupation.\u201d<\/em><\/p>\n\n\n\n An explanation of NI\u2019s current rates system is available here<\/a>, while DoF also highlighted that it is currently carrying out a public consultation on a range of rates reliefs and allowances. That consultation is open until 24 February.<\/a><\/p>\n\n\n\n Mr Gosling\u2019s second claim centred on significant growth in the private rental sector in NI over the past 30 years \u2013 from negligible size in 1996 to 13% of all homes today, roughly the same as the Housing Executive and all housing associations combined.<\/p>\n\n\n\n\n
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