Residents have launched a campaign to reimburse the £11 million lost through student council tax exemptions in Durham. 

Data obtained from Durham County Council shows 6,196 properties benefit from student exemptions, while an additional 1,857 properties were also exempt for being purpose-built student accommodation or ‘disregards’. The number of exempt properties has increased by 248 in the past year. 

Student tenants and landlords do not currently have to pay anything towards council tax. Around 97 per cent of all Houses in Multiple Occupation (HMOs) in County Durham are concentrated in Durham City and are predominantly populated by students. 

CIty of Durham Parish Council has now renewed its call for urgent action on the issue, arguing  that the income lost would be enough to plug the financial deficit in Durham County Council’s budget.

Councillor Alan Doig, council chair, said: “As a community, we recognise and value the important role which Durham University and its students play in sustaining local employment and services in the city centre. However, these figures are really quite horrifying.

"We are now in the position that a significant number of properties are being used as student accommodation and therefore exempt from paying any council tax towards all the local services they receive from the county council.”

“It is a scandalous loophole in the tax regime that landlords are not required to contribute towards any funding of these vital services, which are available to all.

"Whilst focusing on holiday lets is also important, the Chancellor would do well to come up North and realise the challenges and financial losses that this loophole places on local authorities and the delivery of vital services for everyone who lives here.”

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Councillors warned that even more money is being lost when other services such as precepts for the parish council, police and fire service are considered. 

But Durham County Council said the criteria is set nationally and in the power of the government. 

Victoria Murray, head of transactional and customer services, said: “The criteria for council tax exemptions and ‘disregards’ is set nationally by government and is applied by local authorities across the country. We do not have any local discretion in this regard and must apply the national rules here in County Durham.”