Martin Rayner received a council tax refund of more than £9,300 after successfully challenging the band on his home and discovering he had been paying too much for years.

The 55-year-old, who lives in Rotherhithe, south-east London, managed to get his property moved from Band E to Band D after investigating how much it would have been worth in 1991.

Council tax bands in England are based on property values as of 1 April 1991, rather than what homes are worth today, with properties placed in one of eight bands ranging from A to H.

Martin, a financial adviser, suspected his home had been placed in the wrong band and used historical house price data to estimate its value in 1991.

His calculations suggested it should have been in Band D, which covers homes valued between £68,001 and £88,000 as of April 1991, rather than Band E, which covers properties valued between £88,001 and £120,000.

“I took the purchase price of my property and used historical UK House Price Index data published by the Land Registry and the ONS to calculate its estimated value in 1991,” he explained.

“That calculation suggested my property should fall within Band D rather than Band E, so I used this evidence to challenge the valuation with the Valuation Office.

“My argument was straightforward – the calculation relied on official government house price data, so if the Valuation Office disagreed with that assessment, I wanted to understand the evidence and reasoning behind its alternative valuation.

“They couldn’t provide an alternative logic, so my challenge was successful and my property was moved to Band D.”

Martin, who works at Compton Financial Services, said the decision has significantly reduced his annual council tax bill.

In the London Borough of Southwark, where he lives on his own, the difference between Band D and Band E council tax is currently £437.17 a year.

But because he has owned the property since 1998, he also received a substantial backdated refund of £9,308.78.

The successful challenge could bring another benefit following last week’s Budget. The Government announced a new £100 Household Energy Payment for eligible households living in council tax bands A to D in England, meaning Martin could also qualify for the payment now.

“My advice to anyone buying a home would be to check the council tax band and look at the property’s historical value, and compare them. It takes hardly any time and could result in a permanent reduction to your council tax bill,” Martin said.

How to challenge your council tax band

If you think your council tax band is wrong, you can ask for it to be reviewed for free. If you’re successful, you could receive a refund for all the previous years you overpaid, as well as a reduction to your future bills.

First, check which band your property is in using your latest council tax bill or the Government’s free online checker at https://www.gov.uk/council-tax-bands.

This also allows you to look up the bands of neighbouring properties. For example, if your three-bedroom terraced house is in Band E but similar homes on your street are in Band D, it could be worth investigating.

However, differences in size, layout and other features can affect valuations, so a neighbour being in a lower band doesn’t automatically mean yours is wrong.

You can challenge your band through the Valuation Office Agency (VOA), which is responsible for council tax valuations in England and Wales, rather than your local council.

In England, you generally have a legal right to formally challenge your band within six months of becoming liable to pay council tax on a property.

But if you’ve lived in your home for longer than six months, you can still ask the VOA to review your band, you just may not have a legal right to appeal its decision.

You’ll need evidence to support your case to have the most chance of success. For example, the VOA recommends finding up to five comparable properties that are in lower bands, ideally on the same street or estate, which are similar in size, age, type and design.

You can also use historical property sales as evidence. In England, the most useful data is generally sales from between April 1989 and March 1993, close to the original valuation date for council tax purposes.

The VOA warns that house price calculators and indexes aren’t considered strong evidence on their own, because they may not accurately reflect individual property values, so it’s worth gathering other evidence to support your case.

You can submit a challenge through https://www.gov.uk/challenge-council-tax-band.

Formal challenges can take up to four months to resolve, while other band reviews can take up to 12 months. If you’re successful, the VOA will notify your council, which will update your future bills and arrange a refund for what you’ve already overpaid.

However, be aware that your band could also increase if the VOA investigates and finds your home should actually be in a higher council tax band.

You must continue paying your existing council tax bill while your case is being considered, too – but you will be refunded anything you overpay later if you win.

If you make a formal challenge and disagree with the decision, you can usually appeal to the independent Valuation Tribunal within three months.