Tower Hamlets
Tower Hamlets is raising council tax by 4.99% for the 2025-2026 period. This increase aligns with the maximum amount allowed without requiring a referendum. For a Band D property, the total council tax will increase by £79.06, bringing the new total to £1,754.57.
The council's decision to raise taxes comes as part of efforts to close a significant funding gap and manage growing demands for public services. Residents will notice a rise in their bills, which could also impact landlords who cover the tax for their tenants.
Hackney
Hackney is imposing a 4.9% increase in council tax for the upcoming year. For Band D properties, this will mean an additional £89.14 added to the current bill, making the new total £1,966.51.
The increase is in response to the council’s need to fund essential services such as housing and adult social care, which have seen rising costs. With Hackney’s growing population, these increases are expected to help maintain and improve local services while balancing the borough’s budget.
Islington
Islington is another borough raising council tax by 4.99% for 2025-2026. For Band D properties, the increase will amount to an extra £91.29, bringing the total council tax to £2,011.82. This increase is necessary to support local infrastructure, community projects, and vital services such as social care.
For landlords, this increase could potentially affect the affordability of their properties, especially if tenants are responsible for paying their own council tax. It's important to budget for these changes and consider how it might impact tenant retention and overall rental costs.
City of London
The City of London, though a unique entity among London boroughs, is also raising its council tax rates. For 2025-2026, the increase will be 4.6%, resulting in an additional £56.18 for Band D properties. This brings the total council tax bill to £1,274.07.
As with other boroughs, the rise in council tax will help cover the cost of local services. Given the City’s mix of residential and commercial properties, the impact on landlords could vary, but the general trend of increasing costs will likely affect all property owners.
Newham
Newham is raising its council tax by 8.99%, which is higher than the typical 4.99% increase seen in many other boroughs. This translates to an additional £146.31 for Band D properties, bringing the total council tax to £1,773.84.
Newham’s extra-high council tax hike has been approved by the government to avoid potential bankruptcy, and is part of a broader strategy to cope with financial pressures and provide essential public services. Given the borough’s growing population and the increased need for housing and social services, the rise in council tax reflects efforts to maintain local infrastructure and services.
What Does This Mean for Tenants and Landlords?
For tenants, these increases in council tax will likely result in higher monthly living costs, particularly if they are responsible for paying their own bills. For landlords, the impact depends on whether council tax is included in the rent. If so, they may need to adjust rents to cover the additional costs. If tenants are responsible for their own council tax, they will face increased bills.
What Can You Do to Prepare?
- Check Your Band: Make sure your property is in the correct band, as this will determine your council tax rate.
- Prepare for Higher Costs: Both tenants and landlords should budget for these increases to avoid unexpected financial pressure.
- Look for Discounts: Certain exemptions and discounts, such as for single occupancy or student properties, may help reduce the burden.
