Martin Lewis' council tax warning for anyone who bought their house before 1991

Money saving expert Martin Lewis has issued an urgent call for UK residents to verify if they may be entitled to a significant refund on their council tax. He points out that, despite his longstanding campaign, there has been no revaluation of council tax bands in England and Scotland since 1991, potentially leaving countless households overpaying.

Martin explained that for an average Band D property, costing £2,171 annually in Council Tax, a successful challenge leading to a downgrade to the cheaper C band could result in substantial savings. However, Lewis cautions that anyone who purchased their home prior to 1991 should calculate its worth based on the prices at that time, and conduct two specific checks to avoid any potential negative repercussions.

On a recent episode of The Martin Lewis Money Show Live aired on ITV1 and ITVX, he advised: "These are the checks you need to do. The check and challenge system is my system, it is not an official system, this is my way to give you a level of safety."

Martin emphasised, "Nothing here is perfect, I cannot guarantee perfection."

He then outlined the first step: "The first check is the neighbours' check. Is your band higher than neighbours in nearby preferably identical or similar homes? " making it clear that "You don't need to ask them, you can simply go on and check your band at gov.uk for England and Wales.", reports the Express.

Martin Lewis has highlighted an important tip regarding council tax bands and how to challenge them. He advised, "If it looks like you're in a higher band than many of your neighbours in similar homes, the second check, which can't be used in evidence, is your safety check."

He continued, explaining the significance of historical property values: "What was your house worth in 1991? Because it is still those 1991 prices that dictate what band you are in."

Martin then provided further guidance on assessing your home's past value: "So if you bought your house after 1991, it's quite easy you just find the price and the sale date."

He suggested for earlier purchases: "If it was earlier than that, then you go onto those property websites like Zoopla and Rightmove and you try to find a similar property that's been sold since that point that you're going to be able to track down."

Adding the next step: "And then you want to back calculate its value in 1991 prices."

Martin also pointed out there are "And there are free check and challenge calculators online that will convert this for you."

He cautioned that challenging one's council tax band should not be taken lightly due to risks, including inadvertently increasing neighbours' bills. "I would only look at challenging my banding if I passed clearly both tests."

Clarifying the process, he added: "That's because you can't ask for your band to be lowered. You can ask for your band to be looked at. And that means, well, if you only pass the neighbours check, if could mean it's not you who's in too high a band, it's all your neighbours in too low a band, and when you ask for this, their band goes up, which will not make you very popular."