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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

📨 Stamp Duty discourages moves that would put people in homes and jobs that suit them better. 🗑️ Council Tax bills still rest on 1991 valuations, even though prices have diverged massively since then. Since 1995, house prices have risen 7.3-fold in Inner London but only 4.2-fold in the North East.

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).

It would: ✅️ be good for growth 🗺️ address regional disparities 💷 make bills less regressive (with respect to income) But getting there would be a big change...