The Cheapest Council Tax Areas in London

When you’re planning to rent in a new area, we know that one of the most important aspects is your budget. As London is known for being on the pricier side for renters, it’s essential that you know how far your budget will go. An unavoidable cost that needs to be factored in for non-students is Council Tax. 

What is Council Tax and why do I have to pay it? 

Council Tax is an annual fee your local council charges you for the services it provides. Such as schools, rubbish and recycling collections and libraries. It can also pay for policing, street cleaning, park maintenance and the fire service.

Who is exempt from paying Council Tax? 

• If you’re a full time university student or a college student
• If you’re a student on specific apprenticeship schemes 
• 18 and 19 year-olds in full-time education
• People under 25 who get funding from the Skills Funding Agency or Young People’s Learning Agency
• Student nurses
• Foreign language assistants registered with the British Council
• Live-in carers who look after someone who is not their partner, spouse, or child under
• For the full list, head to the GOV.UK website. 

I live on my own, do I get a discount on Council Tax?  

Yes, Council Tax bills are based on at least 2 adults living in a home. You’ll get 25% off the bill if you live on your own, or if anyone else living in your home is under the age of 18.

How is Council Tax calculated?  

Council Tax is charged per property and based on a number of factors, such as: 

• The size of the property
• The layout
• The character
• The location

What defines each Council Tax band? 

This is based on the assessed value of the property. Find out my Council Tax band. 

• Band A: Up to £40,000
• Band B: £40,001 to £52,000
• Band C: £52,001 to £68,000
• Band D: £68,001 to £88,000
• Band E: £88,001 to £120,000
• Band F: £120,001 to £160,000
• Band G: £160,001 to £320,000
• Band H: More than £320,000

When do I have to pay Council Tax?

Payments are taken on a ten monthly basis (April – January), with no payments in February and March. If you pay through Resooma Bills, we will charge you on a monthly basis. To keep things simple, you can set this up as a direct debit so the payment will be taken automatically.

What is the cheapest council tax area in London? 

As of 2021, Westminster has the cheapest Council Tax in London. This is due to the huge amount of income that’s created from business rates. Parking is also a major factor that determines rates. Westminster made a whopping £78 million in profits from parking tickets and fines pre COVID. 

The three cheapest Council Tax areas in North London 

• Westminster – £463.90 a year for a band D property
• Islington – £1276.48 a year for a band D property
• Hackney – £1238.48 a year for a band D property

Search for a property in Westminster, Islington or Hackney

The three cheapest Council Tax areas in East London 

• Newham – £1103.67 a year for a band D property
• Tower Hamlets – £1113.27 a year for a band D property 
• Hackney – £1238.48 a year for a band D property

Search for a property in Newham, Tower Hamlets or Hackney

The three cheapest Council Tax areas in South London 

• Wandsworth – £475.44 a year for a band D property 
• Lambeth – £1,227.93 a year for a band D property
• Greenwich – £1,276.34 a year for a band D property

Search for a property in Wandsworth, Lambeth or Greenwich

The three cheapest Council Tax areas in West London

• Hammersmith and Fulham – £831.96 a year for a band D property
• Hillingdon – £1,276.34 a year for a band D property
• Ealing – £1,300.99 a year for a band D property

Search for a property in Hammersmith and Fulham, Hillingdon or Ealing

Council Tax rates in all London boroughs – Lowest to Highest 

If you want to find the most affordable areas to rent in London, check out this article. 

Looking for a place in London? Search for your next perfect home with Resooma.