Martin Lewis has warned that up to 400,000 households across the UK could be paying too much council tax — and may be owed refunds worth thousands of pounds.
The MoneySavingExpert founder issued the alert in his latest newsletter ahead of council tax rises coming into force on April 1.
Bills in England and Wales are set to rise by up to five per cent, adding around £115 a year to the average Band D property.
In Scotland, increases could reach eight per cent.
While there is little households can do to avoid the hikes, Mr Lewis urged homeowners to spend just 10 minutes checking whether they are in the correct band.
Some MoneySavingExpert users have already reclaimed £3,000, with many reporting payouts worth several thousand pounds.
Mr Lewis explained that the problem dates back to 1991, when council tax bands in England and Scotland were first set.
Many properties were valued quickly using what he called “second‑gear valuations”, with estate agents often assigning bands based on a glance from the street rather than a full assessment.
Wales carried out a full revaluation in 2005, but many homes elsewhere may still be in the wrong band.
He advised homeowners to carry out two checks before challenging their band.
Martin Lewis warns 400,000 households could be overpaying council tax
|Martin Lewis
1. Compare with neighbours
Check the bands of similar nearby properties — either by speaking to neighbours or using official online tools.
“The first check indicates something’s wrong, but is it that your band’s too high, or theirs too low?”
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It could take just 10 minutes check the bands
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2. Estimate your property’s value
Use sites such as Zoopla, Rightmove or Nethouseprices to estimate your home’s current value, then compare it with historic prices to see which band it should fall into.
Mr Lewis stressed that both checks must point to an incorrect band before taking action.
“Even if you pass the neighbours check, you may be in a higher band than neighbours because theirs is too low, not yours too high,” he said.
“Challenge and you risk seeing their band rise, which won’t make you popular.”
If you decide to challenge
Homeowners will need evidence, including Property Attribute Details from the Valuation Office Agency (VOA), which list features such as floor area, number of bedrooms and property age.
Addresses of comparable nearby homes may also be required.
If successful, refunds are backdated to when the resident moved in — or to 1993, whichever is later.
If rejected, homeowners can appeal to a valuation tribunal in England and Wales, or the Local Taxation Chamber in Scotland.