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The UK raises more from property taxes than any other OECD country. 3.7% of GDP in 2023, against an OECD average of 2% 📈 ⤵️ But we raise that money badly. Our new briefing note sets out how to put England's broken housing taxes on firmer foundations 🧵 buff.ly/SAUyopI

Council Tax was regressive by design, but 35 years of price changes have doubled down on the way it bears down hardest on cheaper homes. By 2030-31, the typical effective annual tax rate (Council Tax plus Stamp Duty) on a £100k home will be 1.5%. On a £1m home it will be just 0.6%.

London is the clear winner. In 2024-25, property taxes were 0.8% of the value of housing in the North East, double London's 0.4%. Relative to its housing wealth, London underpaid £3.1bn in tax. Taxing the rest of England at London's rate would be a £12.3bn tax cut.

A better system would replace Council Tax and the main rate of Stamp Duty with a flat rate proportional property tax (with rebates to protect poorer households and deferral for those who are asset-rich but cash-poor).