Council tax bills are about to rise across the country, and that has sharpened attention on whether households are paying the right amount in the first place. Martin Lewis has said many people may have been overpaying for years because their homes were placed in the wrong band.
The issue matters because council tax is tied directly to a property’s banding, which determines what residents pay towards services such as bin collections, road maintenance, libraries, policing and fire services. For some households, this is not a minor paperwork issue at all, but a long-running error with real financial consequences.
Why So Many Homes May Be in the Wrong Band
According to Money Saving Expert, hundreds of thousands of homes across England and Scotland are thought to be in the wrong council tax band, with some homeowners and renters overpaying for many years, even decades. Martin Lewis said refunds of “£1,000s are commonplace” where a property has been placed too high.
The root of the problem, as set out by Money Saving Expert, lies in the way properties were originally assessed in 1991 when the council tax system was introduced. Limited time and resources meant many homes were valued quickly, sometimes with what Martin Lewis described as “just a glance”. In the guide, he said assessors often carried out so-called “second-gear valuations”, driving past properties rather than carrying out detailed checks.
That early process still shapes council tax banding in much of England and Scotland today. Wales, by contrast, later had a full revaluation of properties, which means errors are considered less likely there. According to the Money Saving Expert, this older, unrevised system is one reason why two similar homes in the same area may still be charged differently.
How Households Can Check and Challenge Their Band
There are two main checks residents are urged to make before challenging a band. First, they should compare their property’s band with those of similar or identical neighbouring homes, either by asking directly or by using official band search tools on GOV.UK for England and Wales, or the Scottish Assessors’ Association website in Scotland.
The second step is to work out what the property would have been worth in 1991. Money Saving Expert says this can be estimated using later sale prices or current valuations from sites such as Zoopla, Rightmove and Nethouseprices, before matching that figure against the historical council tax band thresholds.
If someone in England or Wales believes their band is wrong, the route depends on how long they have lived at the property. Those who have been there for six months or less can usually make a formal challenge, known as a proposal, which the Valuation Office Agency must review. Those who have lived there longer may still ask for an informal review, though they must provide strong supporting evidence.
Scotland operates differently. The Scottish Assessors’ Association handles challenges there, and Money Saving Expert says there is no informal route if a resident cannot challenge formally. In that case, people must still go through the proposal process and will need convincing evidence if they want the band to be reconsidered. For households facing higher bills from April, that may be reason enough to take a closer look at what they are already paying.
