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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.

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%.

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...