Neighbour Paying Less Council Tax? Here's Why

It's one of those conversations that comes up over the garden fence: you mention your council tax bill, and your neighbour quotes a figure that's noticeably lower than yours. You live on the same street, in similar houses — so why the difference?

The answer usually comes down to council tax bands, and understanding why they differ could save you serious money.

How Council Tax Bands Create Unequal Bills

Every property has a council tax band, from A (lowest) to H (highest). The band determines what proportion of the standard council tax charge you pay. All properties in the same band within the same local authority pay the same amount.

So if your neighbour is paying less, it means one of two things: they're in a lower band than you, or they're receiving a discount (single person discount, student exemption, etc.).

If it's a band difference, the gap can be substantial. The difference between adjacent bands is typically £200 to £400 per year, depending on your council. Over a decade, that adds up to several thousand pounds.

Why Similar Properties End Up in Different Bands

This is more common than you'd think, and there are several reasons it happens:

The Original Banding Was Inconsistent

When properties were first banded in 1991, the process was far from perfect. Valuers assessed approximately 25 million properties under significant time pressure, and many were banded using broad estimates rather than detailed individual assessments.

Properties that appear very similar from the outside can have different bands because the original valuers made different judgements about them. Perhaps one was viewed from a slightly different angle, or the valuer made an assumption about interior size that turned out to be wrong.

One Property Was Reassessed

If your neighbour bought their property relatively recently, their band may have been reviewed as part of the sale process. In some cases, the VOA reassesses properties when they're sold, and this can result in a band change.

Alternatively, your neighbour (or a previous owner) may have successfully challenged the band at some point, getting it reduced while yours stayed the same.

Differences You Can't See from Outside

Not all property differences are visible from the street. Your neighbour's house might have:

• Fewer bedrooms (perhaps they didn't convert the loft)
• A smaller kitchen extension
• No garage or fewer parking spaces
• Different features that affect the 1991 valuation

Remember, it's the 1991 value that matters, not the current value. Changes made after 1991 generally shouldn't affect the band until the property is sold.

Different Property Descriptions

The VOA holds a description of each property that includes details like the property type, number of rooms, and any significant features. Sometimes these descriptions contain errors — your property might be recorded as having an extra bedroom, a garage, or a larger plot than it actually has.

These errors can lead to a higher band than your property deserves.

How to Find Out Your Neighbour's Band

You don't need to ask your neighbour directly — council tax bands are public information. You can look up any property's band on the GOV.UK website by searching the postcode.

Even better, use TaxBandCheck to automatically compare your property with all similar properties in your postcode. We'll flag any anomalies and estimate how much you could save if your band were corrected.

What to Do If Your Band Seems Too High

If you've confirmed that your neighbour (or several neighbours) in similar properties are in lower bands, here's what to do:

1. Gather Your Evidence

Look at all the comparable properties in your immediate area, not just one neighbour. The more properties you can find in a lower band, the stronger your case. Focus on properties that are genuinely similar to yours in type, size, and age.

2. Consider the Risk

Before making a formal challenge, understand that the VOA could increase your band as well as decrease it. However, if multiple comparable properties are in a lower band, this risk is generally small.

3. Start Informally

Call the VOA on 03000 501 501 to discuss your situation. They can often give you an informal view on whether your evidence is strong enough for a formal challenge.

4. Submit a Formal Challenge

If you decide to proceed, you can challenge your band through the GOV.UK website. Include your list of comparable properties and explain why you believe your band should be lower.

5. Consider Professional Help

Council tax claims specialists handle these challenges daily and know exactly what evidence the VOA looks for. Most work on a no-win, no-fee basis, so there's no upfront cost.

Real-World Examples

Terraced houses in Bristol: A homeowner discovered that 4 of the 6 houses in their terrace were in Band C, while theirs and one other were in Band D. After challenging, both properties were moved to Band C, resulting in refunds of over £2,000 each.

Semi-detached pair in Leeds: Two near-identical semis had been in different bands since 1993. The owner in the higher band challenged and received a reduction plus a 15-year backdated refund of £3,750.

Flats in Manchester: A block of 12 identical flats had 8 in Band B and 4 in Band C. The four Band C residents challenged together and all received reductions and refunds.

Don't Ignore the Difference

If your neighbour is paying less council tax for a similar property, it's worth investigating. The check itself is free, quick, and carries no risk — you're not making a formal challenge just by looking at the bands.

Many people assume that council tax bands are set in stone and there's nothing they can do. That's simply not true. If your band is wrong, you have every right to get it corrected — and the potential savings make it well worth the effort.

Check your band against your neighbours now with TaxBandCheck. It takes less than two minutes.