Who Pays Rates — Landlord or Tenant — in Northern Ireland

Northern Ireland Has Rates, Not Council Tax

If you have been searching for "council tax landlord Northern Ireland," you are looking for the wrong thing. Northern Ireland does not use Council Tax. Instead, it levies domestic rates under the Rates (Northern Ireland) Order 1977, administered by Land & Property Services (LPS), an executive agency within the Department of Finance.

Rates are calculated using the property's Capital Value — a figure assessed by LPS based on the property's estimated sale price as at 1 January 2005. You can look up any property's Capital Value on the LPS online valuation list.

The £150,000 Threshold

Article 20 of the Rates Order sets a statutory dividing line:

• Capital Value of £150,000 or less: The landlord is liable for domestic rates. This is a statutory obligation. You cannot transfer it to the tenant through a clause in the tenancy agreement. Even if your lease says "the tenant pays rates," the liability remains with you as a matter of law.
• Capital Value above £150,000: The occupier (the tenant) is liable for rates, unless there is a formal written arrangement under Article 21 where you agree to collect and remit rates on their behalf.

HMOs and Multi-Unit Properties

There is an exception to the £150,000 rule. If the property is a House in Multiple Occupation (HMO), or if a dwelling has been divided into separate self-contained flats or lodgings, the owner is liable for rates regardless of the Capital Value. This catches the common situation where a landlord converts a terraced house into bedsits — even if the property is worth more than £150,000, rates liability stays with the landlord.

What This Means for Your Rent

When your property has a Capital Value at or below £150,000, you need to factor rates into your rental calculation because you are paying them. Some landlords set rent at a figure that includes rates; others quote a net rent and pay rates separately. Either approach works, but the Rent Book must show whether the rent figure includes or excludes rates, with the breakdown made clear.

When the tenant is liable (Capital Value above £150,000), they pay LPS directly. You still need to tell them about the rates obligation in the Tenancy Information Notice, which requires disclosure of who is responsible for domestic rates.

Checking Your Property's Capital Value

Go to the LPS online valuation list and search by address. The Capital Value is fixed as at 1 January 2005, so it does not move with the market — a property that has risen significantly in actual value since 2005 may still sit below the £150,000 statutory threshold. The current domestic valuation list is still based on 1 January 2005 values.

If you believe the Capital Value is wrong, there is a formal appeal process through the Commissioner of Valuation, but adjustments are rare for domestic properties unless there has been a material change (extension, subdivision, merger of units).

Rent Book, TIN, and the Rates Line

Both the Rent Book and the Tenancy Information Notice must disclose the rates position accurately. A mismatch — your agreement says the tenant pays rates, but the Capital Value is £140,000 — creates confusion and potential disputes. If the tenant has been paying rates that were legally your liability, they may have a claim.

The Northern Ireland Private Tenancy Rules guide includes the rates liability matrix alongside the full first-35-days compliance checklist, so you can set the position correctly before the tenancy starts.

See more Northern Ireland guides →