Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps are taken by the Valuation Office Agency when determining the Council Tax Band for new developments to ensure that the allocated band correctly reflects the nature of all properties within those developments, including where some properties within a development are intended for social rental and others are intended to be let at market rate.

The statutory assumptions for banding are set out in the Council Tax (Situation and Valuation of Dwellings) Regulations 1992. In order to band a new property for Council Tax purposes, Listing Officers from the Valuation Office Agency will have regard to the age, location, size and character of the property and will look for comparable sales, which took place around the antecedent valuation date which is 1 April 1991 (England) or 1 April 2003 (Wales).

As Council Tax banding is based on capital values, for most new developments where there is an element of social housing, the amounts of rents paid are not a factor that it is taken into account in banding decisions.