Council Tax and Bills in London Explained: Student Exemptions, House Shares and Realistic Monthly Costs

Council Tax and monthly bills can surprise newcomers. Here’s a clear, practical guide for students and young professionals.

Council Tax 101

• What it is: a local tax for services (waste, roads, local services). Charged per property, not per person.
• Bands: A–H based on property valuation. Check your band: https://www.gov.uk/council-tax-bands
• Who pays: usually the occupants (tenants) unless the property is exempt.

Student exemptions and discounts

• Full‑time students: usually exempt. A household of full‑time students should pay £0.
• Mixed households: if one non‑student lives with students, the bill is typically reduced by 25% (single‑person discount), then the non‑student pays it.
• Evidence: request a council tax certificate/letter from your university; submit it to your local council.
• International students: same rules if you are full‑time and meet criteria.

Learn more: https://www.gov.uk/council-tax/discounts-for-full-time-students

Bills included vs bills excluded

• Bills included: simpler budgeting; may cost slightly more overall. Clarify which utilities are included and any usage caps.
• Bills excluded: you set up accounts and split costs. Expect some admin and seasonal variation.

Typical bills (guide only – varies by property, usage and tariffs):

• Electricity and gas
• Water
• Broadband/Internet
• TV Licence (if you watch/record live TV or use BBC iPlayer): https://www.tvlicensing.co.uk/

House shares (HMOs) – who pays what?

• Council tax: if all tenants are full‑time students, likely exempt. Otherwise, one bill per property split among tenants (unless your contract says otherwise).
• Names on bills: choose one or multiple tenants as account holders; use an expense‑splitting app to share fairly.
• HMO licensing: some properties require a licence; ask your agent/landlord.

How to budget monthly

Use this simple framework:

1. Fixed: rent + (council tax if applicable) + broadband
2. Variable: energy (seasonal), water, TV licence (annual), contents insurance
3. Setup one‑offs: router/installation, furniture, cookware

Tip: If your rent is “bills included,” still ask for average energy usage and any fair‑use policy to avoid surprise charges.

Moving in – checklist

• Confirm if council tax is included or your responsibility
• If responsible, register with your council (search “register council tax” + borough)
• Set up energy/water/broadband promptly
• Take meter photos on move‑in day
• Keep all account numbers and logins in one secure place

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Related reads

• Renting paperwork and deposits: 2025 London renting guide
• Find an area by budget/commute: Neighborhoods playbook
• Week‑one admin: Expat setup checklist

Disclaimer: Information current as of 2025; council policies and tariffs change. Always confirm with your local council and suppliers.