Council tax inequality: Million-pound homes pay as little as 0.03%

Contributing sentiments towards policy:

55% : There would then also be a local property tax to replace council tax for all homes, no matter the value.
55% : Lower income households generally are paying a higher percentage of their income on council tax.' 'However, we have been told that a revaluation will not happen for the time being as perhaps the inevitable increases for some households would be difficult to accept politically. '
53% : It means that, in areas where house prices have risen rapidly, those living in very expensive homes can still pay relatively little in tax.
52% : People living in London are paying, on average, 0.27 per cent of their home's value in council tax each year according to analysis by analytics firm PropertyData - meaning they have the cheapest bills in the country on a proportional basis.
52% : However, he argues that charging 0.44 per cent of the value of a house up to £500,000 would be enough to cover the current revenues local authorities make from council tax - £37 billion in the fiscal year 2023-24. Renters would not have to pay the new property tax under this system, as their landlord would be required to - but landlords would likely increase their rent to cover the bill.
51% : For example, in Wandsworth, south London, the average council tax bill for someone living in a Band D property is £990.07 while in Newcastle, the average Band D property currently pays £2,463.98 in council tax.
51% : The analysis by PropertyData, which was based on band D homes, suggests households in Newcastle and Preston are paying almost three times more in council tax as a proportion of local house prices.
51% : There have been widespread calls for reform of council tax.
50% : The research also revealed people living in Liverpool are paying the equivalent of 0.73 per cent of their home's value in council tax each year and in Nottingham it is 0.72 per cent.
50% : Based on council tax as a proportion of house prices, it means the band E property in Preston is 29 times more expensive than the North West London home.
48% : The relationship between present property values and council tax paid has changed as property markets have evolved significantly since,' says Leaf.
47% : Similarly, the occupant of a band E house in Preston, which sold for £148,500 in July 2025, currently pays £3,015.67 in council tax each year - the equivalent of 2.03 per cent of the purchase price.
46% : The homeowner there will pay £2,940.96 in council tax each year equating to 0.03 per cent of its value.
46% : Mr Leunig says the rates should be linked to inflation and the property's value for tax purposes reset each time the house is sold.

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