Local authority loses Court of Appeal battle with landlord over council tax liability

A city council has lost its appeal over whether landlords are responsible for paying council tax on a property when a tenant moves out before the tenancy agreement has expired, it has been reported.

The case of Leeds City Council v Broadley related to Leeds’ demands for council tax in relation to five properties owned by Mr Broadley. The demands covered periods when the homes were empty but the tenancies had not been formally ended.

The Residential Landlords Association (RLA), which intervened in the case via written submissions, said the tenancies in question were contractual periodic tenancies following a fixed term and that Leeds’ argument was based on the claim that a single tenancy cannot be both a fixed term and periodic.

The landlord argued that the contract created a single tenancy whose term was six months and thereafter continuing as a monthly tenancy. This would have the same effect as a fixed term assured shorthold tenancy.

Mr Justice Edis in the High Court ruled that the council tax liability remained with the tenant rather than the landlord. The judge said the tenancy agreement in question did not offend against the uncertainty rule.

Leeds appealed but this has been dismissed. The written reasons of the Court of Appeal are to be published at a later date.

Justin Bates of Arden Chambers, instructed by Giles Peaker of Anthony Gold Solictiors, acted for the RLA.

David Smith, Policy Director for the RLA, said: “The RLA is very pleased with this decision which upholds the basic principles of tenure”.

For information on the case when it was at the High Court, see Interpreting tenancy agreements by William Dean.