The Council Tax Conundrum: A Battle for Fairness and Justice

The Council Tax System's Shortcomings: An Urgent Call for Reform

Hannah Chowdhry, a law student and property owner, recently sought an annulment of her council tax bill, arguing that her property—constructed with RAAC (Reinforced Autoclaved Aerated Concrete)—should be exempt due to its deteriorated state. Her request was driven by a desire to understand the exemption process and share insights with others facing similar issues, though she is exempt by way of her student status.  The response from the Grampian Assessor & Electoral Registration Office, however, underscores significant flaws in the Council Tax system that demand urgent reform.

The System's Fundamental Issues

The Council Tax banding system, established under The Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992, is based on the capital value of a property as of April 1, 1991. The assumption is that the property was in a "state of reasonable repair" on that date. This rigid approach fails to account for the reality of properties built with inherently flawed materials like RAAC, which pose significant risks and repair challenges.

The Fairer Council Tax consultation has revealed critical gaps in how property conditions are evaluated:

"For many years, a common criticism of Council Tax has been that it is unfair and regressive. This is because when the average Council Tax liability is expressed as a percentage of the estimated property value, the effective tax rate is higher for lower value properties and lower for the higher value properties["

Despite past court rulings, such as those involving properties in 14 Portnalong, Isle of Skye, and 5 Muirkirk Road, Strathaven, which argued properties should be valued as if in reasonable repair regardless of their actual state, the system has not adapted to reflect the true conditions of these buildings.

The Real-World Impact on Homeowners

Hannah Chowdhry’s case highlights the systemic unfairness faced by homeowners. Aberdeen City Council's decision to demolish RAAC-affected buildings due to their unsuitability demonstrates a disconnect between the real state of these properties and the Council Tax banding system. Property owners, often who bought under the Right-to-Buy scheme, now face escalating costs and diminishing property values, despite having invested in what they believed were valuable assets.

The Fairer Council Tax consultation also points out that the current system disproportionately affects homeowners of properties built with substandard materials. These individuals are left to shoulder the financial burden of outdated construction practices while councils benefit from ongoing Council Tax payments and potentially acquire properties through Compulsory Purchase Orders or poorly valued voluntary agreements.

Addressing Systemic Inequities

The consultation’s findings highlight the need for a system that accounts for the true condition of properties and offers fairer treatment to those affected by substandard building materials. The current Council Tax framework punishes homeowners for issues they did not create and fails to provide adequate support or recourse.

The Right-to-Buy scheme, originally designed to broaden access to homeownership, has instead placed many homeowners of RAAC-affected properties in challenging situations. Councils, having sold these properties to unsuspecting buyers, have effectively absolved themselves of responsibility for their long-term upkeep. Consequently, the current system unfairly penalizes homeowners for structural deficiencies that stem from past council construction practices. This has led to a situation where individuals are left to bear the financial burden of issues that originated long before their ownership.

A Call for Reform

Wilson Chowdhry, Chairman of the UK RAAC Campaign Group, said: "The Fairer Council Tax consultation underscores the need for reform to address the real-world implications of property conditions. However, it has failed to recognize the severe challenges faced by homeowners dealing with properties constructed from substandard materials, such as those involved in the RAAC scandal. The Council Tax system must evolve to consider these substandard construction practices and ensure that property valuations and tax banding are adjusted accordingly. Homeowners should not be burdened with the financial consequences of outdated building practices. The system needs to provide the support and fairness that these individuals deserve."

Hannah Chowdhry’s experience is a poignant example of the systemic issues at play and a powerful call to action for policymakers and the public. She said: "It is time to advocate for a fairer, more equitable Council Tax system that addresses these fundamental flaws and supports those who have been let down by inadequate construction practices."

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Text from email to Hannah Chowdhry:

Dear Ms Chowdhry

 I refer to your outstanding proposal against the Council Tax banding of the above property.

Council Tax banding is based on the capital value of the property as at 1 April 1991, subject to a number of statutory assumptions detailed within The Council Tax (Valuation of Dwellings) (Scotland) Regulations 1992.  Regulation 2 (d) states the following assumption:

“that the dwelling was in a state of reasonable repair”

With regard to your property, the discovery of RAAC concrete must be disregarded as this is a condition which is repairable.

A number of cases regarding repairs and property condition have been brought before the Court of Session and I will summarise the decision in the two principal cases below.

The property addressed as  “14 Portnalong, Isle of Skye” was in a dilapidated state.  The owner appealed that it should be excluded from the Council Tax list.  The property was built in the 1920’s with stone gables, corrugated iron walls and an asbestos tiled roof, it had no plumbed in running water, no 13 amp electric supply and no sewage disposal facilities.  The rear wing was totally derelict and the back room had its windows boarded up.  The court decided that all the issues were repairable and that the property should be banded as if it was in a reasonable state of repair.

The second case involves a property at 5 Muirkirk Road, Strathaven.  This was a semi-detached property which had been subject to settlement.  The gable wall was out of plumb, the front and rear walls sloped backwards.  Internally the walls were out of plumb and the floors sloped.  Structural engineers recommended major works to resolve the matter.  An appeal requesting the Council Tax band be reduced due to these factors failed as the property had to be valued as if it were in a reasonable state of repair.

It is my opinion, particularly in light of these previous appeals,  that the discovery RAAC in your property falls under the reasonable state of repair assumption within the legislation and as such the current banding of the property is correct. 

However, should you still disagree with the above, you do have the right to proceed to a formal appeal.  In order to do so, you must appeal against this notice to the First-Tier Tribunal for Scotland within 42 days of the date of this statement.  Details on how to make such an appeal can be found at www.localtaxationchamber.scot.

Kind Regards

Bruce

Bruce Simpson MRICS
Principal Valuer
Assessor & Electoral Registration Office

MP Brian Leishman Calls for Justice for RAAC Homeowners in UK Parliament

IMAGE:MP Brian Leishman with Wilson Chowdhry Chairman of the UK RAAC Campaign Group

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UK Parliament – Yesterday, MP Brian Leishman delivered a passionate call for justice for homeowners affected by Reinforced Autoclaved Aerated Concrete (RAAC) in the UK Parliament. His latest action follows a series of letters for which he is still awaiting a response from ministers in both the Scottish and UK Governments.

Leishman, known for his advocacy on building safety, refused to stand by and wait for official responses. During the Sir David Amess Adjournment Debate—named in honor of the late MP renowned for raising multiple constituency issues in a short time—Leishman highlighted the pressing RAAC situation in Tillicoultry as a matter of national concern. The debate was addressed by Rushanara Ali, Parliamentary Under-Secretary of State for Building Safety and Homelessness, and Alex Norris, Parliamentary Under-Secretary of State for Democracy and Local Growth.

In his speech, MP Leishman shared the heartbreaking stories of the impacted residents:

"Amongst the residents that have been impacted by RAAC, I met a couple who had lived in their flat for 40 years. They’d achieved the dream of home ownership, and when this hard-working couple had finally paid off the mortgage on the ex-council flat, they described it as a moment of immense pride and achievement. Those emotions have been replaced with anxiety, despair, and, in no small measure, anger. Anger at the insurance companies, who have told the residents that there is no obligation to cover as they say RAAC is not a named peril on insured costs...

A video of his full statement in Parliament can be viewed here: 

In an email to Wilson Chowdhry, Chairman of the UK Campaign Group, Leishman's office expressed his commitment to the cause. "Brian felt strongly that he couldn’t simply wait around for the replies to his letters," the email stated, underscoring his dedication to holding the government accountable for the safety and well-being of RAAC-affected residents.

Mr. Leishman became well-versed in the RAAC housing crisis in Clackmannanshire after meeting with Mr. Chowdhry and local homeowners at Centenary Hall on August 24, 2024. During this meeting, Brian Leishman MP committed to taking concrete action on their behalf. He outlined plans to contact key government officials, including Angela Rayner, Secretary of State for Housing, Communities and Local Government; Ian Murray, Secretary of State for Scotland; and John Swinney, First Minister of Scotland, to urge a coordinated response from both the UK and Scottish Governments. Leishman also pledged to raise the issue through Parliamentary Questions to seek legislative changes that could prevent similar crises in the future.

In an email, Mr. Leishman wrote:

"I am, of course, happy to consider Parliamentary Questions further down the line, but that may take some time as we are currently in recess and will more or less be until after conference season ends in a few weeks. I have taken the more immediate step of writing directly to the various Secretaries of State and Ministers now so that I can get things moving forward as quickly as I can."

Leishman’s proactive approach continues as he pushes for further discussions with ministers to address the RAAC crisis.

Brian Leishman’s efforts have sparked hope among homeowners and campaigners. Updates on responses from both the Scottish and UK Governments will be communicated as soon as they are received. Meanwhile, Leishman is exploring opportunities to attend an upcoming meeting at Kilncraigs, pending any scheduling conflicts.

In response to these ongoing concerns, a meeting has been scheduled for September 20th with Kevin Wells, the Strategic Director for Place, and Wilson Chowdhry, Chairman of the UK RAAC Campaign Group. This meeting aims to give residents an opportunity to voice their concerns and seek direct answers from the council regarding their predicament.

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The text of Mr Leishman's Speech

Amongst the residents that have been impacted by RAAC I met a couple who had lived in their flat for 40 years.  They’d achievd the dream of home ownership and when this hard-working couple had finally paid off the mortgage on the ex-council flat, they described it as a moment of immense pride and achievement. Those emotions have been replaced with anxiety and despair and in no small measure anger.  Anger at the insurance companies, they have told the residents that there is no obligation to cover as they say RAAC is not a named peril on insured costs. And after evacuation some of the homeowners found themselves placed into hotels.  Some chose to stay with family or friends, some had to present as homeless and therefore be relocated to Clackmannanshire Council’s temporary accommodation. Some of us were relocated to bed and breakfast accommodation in Kirkcaldy and Fife a town 31 miles away from Tillicoultry. What a situation to be in for those homeowners that work locally or have children in school or look after elderly relatives. Madame Deputy Speaker nearly a year on, and these constituents live a life in limbo. Some are leading a nomadic existence going from property to property. Some feel like a burden on their friends and family. Some tell me their physical and mental health has suffered and some have told me that they are staring into the abyss. That their golden years of retirement have been snatched away because of the financial impact of what’s happened to them.  But all of them are united by the anguish, of not having somewhere to put down roots and call home.

UK RAAC Campaign group Response to Scottish Government’s Disappointing Reply on RAAC Petition: Urgent Action Required

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WATCH FIRST NATIONAL AND INTERNATIONAL NEWS FEATURE ON RAAC HOUSING CRISES (HERE)

Following the Scottish Government's written response to our petition dated August 22, 2024, regarding the Reinforced Autoclaved Aerated Concrete (RAAC) crisis, we express our deep disappointment with their response. The government's reply fails to address key issues and lacks the urgency needed to resolve the growing safety concerns surrounding RAAC in Scottish housing.

In their response, the Scottish Government highlighted that RAAC is not inherently unsafe if properly manufactured, designed, and maintained. They referred to advice from the Institution of Structural Engineers (IStructE) recommending a risk-based approach. However, this advice does not adequately address the widespread problems identified in various council estates across Scotland, such as Deans South, Balnagask, Craigshill, Chapele Crescent, and others.

Despite previous issues with RAAC, including the unsafe conditions found in Deans South in 2004 and similar problems in Aberdeen and Tillicoultry, the Scottish Government's response seems to downplay the severity of these issues. Their commitment to working with local authorities and exploring funding sources appears insufficient given the gravity of the situation. The response also lacks specific measures to address the financial challenges faced by homeowners and councils, leaving many at risk of losing their homes.

Our detailed response to the Scottish Government’s submission highlights several critical points:

1. Inadequate Government Action: The Scottish Government's response does not acknowledge the historical failures of councils to address RAAC issues, particularly in light of past demolitions and safety concerns in properties built by local authorities.

2. Funding and Support: We have urged the Scottish Government to consider reallocating funds from the £3.5 billion affordable housing budget or to negotiate with the UK Government for access to some of the £1.5 billion allocated for Grenfell Tower, which remains largely unused.

3. Need for Comprehensive Inspections: We have called for immediate, comprehensive inspections of all RAAC properties and the establishment of a national high-risk register to streamline the inspection process and improve transparency.

4. Stricter Legislation: We advocate for stricter penalties for solicitors and surveyors to ensure thorough inspections and prevent future issues.

5. Public Inquiry: We believe a public inquiry is necessary to investigate the failures of councils and government bodies, particularly how RAAC was allowed to persist and why necessary inspections were not conducted sooner.

Our response underscores the urgent need for decisive action to protect homeowners and address the longstanding issues with RAAC. We urge the Scottish Government and relevant authorities to reconsider their position and take the necessary steps to ensure the safety and well-being of affected communities.

A full copy of our response can be read (here)

Wilson Chowdhry, Chairman of the UK Campaign Group, said, “We are outraged by the Scottish Government’s continued laissez-faire attitude towards the RAAC crisis. Their inaction and lack of financial support are condemning thousands of homeowners to severe financial turmoil. With 138 affected in Aberdeen, 337 in West Lothian, 100 in Clackmannanshire, and 337 in Dundee, along with numerous others in Lanarkshire and beyond, the scale of the problem is staggering. The Scottish Government is failing to address the dire consequences of their past decisions to use cheap, unsafe materials. Their reluctance to provide financial assistance or a meaningful solution is deeply troubling and will only exacerbate the hardship faced by these homeowners.”

RAAC Crisis: The Legal Fightback to Protect Homeowners' Rights

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Aberdeen City Council made a deeply concerning decision to demolish the homes of nearly 150 people due to the presence of Reinforced Autoclaved Aerated Concrete (RAAC) in their buildings. The council has proposed compensating these homeowners with only the current market value of their properties, which is expected to be significantly lower than the values before RAAC was identified. Moreover, the council is deducting up to £70,000 for roof repairs, impacting homes that the council itself built and later sold off to unsuspecting ex-council tenants. These tenants, in turn, sold these properties to other unsuspecting buyers. As a result, a legal strategy is being developed, potentially involving litigation.

In response, the Torry Community RAAC Campaign in Aberdeen is actively consulting with legal professionals to explore a class action lawsuit. Mr. Wilson Chowdhry has outlined key legal aspects for discussion with a solicitor, which include:

1. Wednesbury Unreasonableness: This principle argues that the council's decision is irrational or unreasonable to the extent that no reasonable authority would have made the same decision. This may include examining whether the council has acted within its powers and whether the decision to demolish homes and offer below-market compensation was made with due consideration of all relevant factors.

2. Estoppel or Law of Bar: Under the Right-to-Buy scheme, the council sold these properties to tenants with the expectation that they were fit for habitation and without defects like RAAC. If it can be established that the council knew or should have known about the RAAC issues at the time of sale, this could invoke the principles of estoppel, preventing the council from denying liability for the defects and the associated depreciation in property value.

3. Latent Defects: If evidence shows that RAAC in these properties had already exceeded its designed lifetime at the time of sale, this could be classified as a latent defect—a hidden flaw that was not disclosed to the buyers. If proven, this could give homeowners grounds to claim that the council failed to meet its obligations to disclose or rectify such defects.

4. Negligence: There is a potential claim of negligence if it can be shown that the council had a duty of care towards the homeowners, which was breached by their failure to adequately address or disclose the RAAC issues. Establishing a sufficient nexus to duty of care would be critical in pursuing this line of argument.

5. Judicial Review: The possibility of seeking a judicial review of Aberdeen City Council's decision is also being explored. Grounds for this include failure to disclose key plans, such as the intent to offer only current market value for the properties before conducting surveys, limited engagement with affected homeowners, and ignoring communications from those impacted. A judicial review could challenge the legality of the council’s process and decision-making.

A recent discovery revealed that RAAC was used as a pilot in two Basildon estates, with one being completely demolished in the 1990s. Additionally, the well-known case of homeowners in Deans South from 2004 suggests that both the councils and the government should have addressed the RAAC crisis much earlier. Their failures have allowed further property sales, exacerbating the issue and leaving many homeowners at risk.

A similar process is unfolding in Tillicoultry, where 30 homeowners have been evacuated from their RAAC-affected homes. These families and individuals have faced challenges in securing legal representation, prompting a local practitioner to initiate a Twitter campaign to seek assistance from the legal community as critical deadlines approach.  Eva Comrie, a solicitor from the legal firm Alva, posted the following on Twitter today:

Conversation

eva comrie

@mickbrick54

Lawyers of X and structural engineers - residents of Tillicoultry need your advice now. #RAAC report to be considered by Clacks Council next week. Please share and DM me if you can assist.

Quote

eva comrie

@mickbrick54

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Sep 11

What a worry for residents. x.com/alloatiser/sta…

12:54 PM · Sep 13, 2024

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334

Views

In a private homeowners whats app agroup, Rebecca Doherty a young homwoner,wrote (sic):  

"So I was told by [Wilson Lees] to contact Govan Law , shelter and citezen advice this was all over phone at start but none were able to help I contacted another solicitor from Alva Eva Comrie who wasn’t able to help. I then in a meeting with counsellor Mctaggert brought up how I was struggling to find any representation and she asked me why I would need that and basically told me I wouldn’t need anyone x"

For Aberdeen homeowners, the urgency is heightened by the looming three-month deadline to apply for a judicial review following the council's decision. Efforts are underway to identify a suitable solicitor who can advocate for these and other pressing concerns. This legal approach aims not only to secure fair compensation for homeowners but also to hold Aberdeen City Council accountable for its decisions and to ensure that similar situations are handled with greater transparency and responsibility in the future.

RAAC Campaigners everywhere are committed to addressing these issues through all available legal channels, ensuring that the rights of affected homeowners are protected and that justice is pursued for all parties impacted by these council decisions.

Mr Wilson Chowdhry, Chairman of the UK RAAC Campaign Group, said: 

"I am deeply disgusted by the way homeowners have been treated by Scottish councils and the Scottish Government. It's appalling that decisions have been made that put homeowners on the brink of financial crisis, all due to clear errors in how local authorities and the government responded to the RAAC crisis. Despite the demolition of an entire estate in Basildon, England, as early as the 1980s due to RAAC concerns, and the similar plight of homeowners in West Lothian in 2004, councils and the government failed to act decisively to eliminate this threat. Instead, they allowed more homes to be sold or resold to unsuspecting buyers, exacerbating the crisis.

It’s important to remember that these homes were government-funded and sold under the Right to Buy scheme by councils that opted to cut corners by building on the cheap. It seems England and Wales learned from their initial RAAC housing issues, but Scottish councils, perhaps encouraged by the fact that RAAC was locally manufactured in Newmains, chose to continue the proliferation of these dangerous homes. The current situation in Tillicoultry, where homeowners have not been able to find a solicitor, is shocking. I am particularly bemused by the actions of Cllr McTaggart, who advised Ms. Doherty that she does not need a solicitor—this seems highly irresponsible. Our homeowners deserve better protection and support than this."

In the meanwhile UK RAAC Campaign Group continues to lobby for a political solution, hoping for a national budget to manifest via the Scottish Government.  A response to an online petition on the Scottish Parliament Petitions website provided upsetting results.  You can read more (here).  The group is urging more people to sign their petition.