About Property Tax Lab

Property Tax Lab provides detailed evaluation of residential property tax policy in England and Wales. We compile and analyse official statistics, model policy scenarios, and examine the academic literature, to support better-informed public debate among policymakers, legislators, journalists, and researchers.

We cover three taxes: Council Tax, the High Value Council Tax Surcharge (HVCTS), and Stamp Duty Land Tax. Together, these raise over £45 billion annually and affect nearly every household in England and Wales.

We draw on official statistics from HMRC, the Valuation Office Agency, the Office for National Statistics, and the Land Registry. Where we build models or make estimates, we explain our methodology and flag uncertainty clearly.

• Council Tax: property counts by band, tax rates, and estimated property values for every local authority in England and Wales, plus revenue-neutral scenario modelling showing how the burden would shift under a proportional rate
• HVCTS analysis: estimates of properties in scope, projected revenue by region, valuation methodology, and collection challenges for the new surcharge on £2m+ properties announced in November 2025
• Stamp Duty: current SDLT rate tables, HMRC revenue statistics, regional breakdowns, and a summary of the academic literature on mobility and efficiency effects

Council Tax

Council Tax was introduced in 1993 as a replacement for the Community Charge. Properties in England are assigned to one of eight bands (A–H) based on estimated values at 1 April 1991; Wales revalued in 2003, adding Band I. Tax liability varies by fixed ratios relative to Band D: Band A pays 6/9 of Band D, Band H pays 18/9, meaning the range between the lowest and highest band is exactly 3:1, regardless of actual market values. England has not revalued since 1991.

The structural consequences have been examined in detail by the Institute for Fiscal Studies. Adam et al. (2020) note that the frozen 1991 valuations cause substantial divergence between Council Tax liability and current property values, with owners of high-value properties, particularly in London and the South East, paying considerably less as a share of value than owners of lower-value homes. The Mirrlees Review (IFS, 2011) recommended replacing Council Tax with an annually revalued proportional property tax.

High Value Council Tax Surcharge

The HVCTS, announced by HM Treasury in November 2025, is an annual surcharge on properties valued at £2 million or more at current market values. Unlike Council Tax, it is levied on legal owners rather than occupiers and will be revalued every five years. The Valuation Office Agency indicated to the Treasury Select Committee (January 2026) that 150,000–200,000 properties are likely to fall within scope.

Stamp Duty Land Tax

SDLT is a transaction tax on property purchases in England, with marginal rates from 0% to 12% and additional surcharges for second homes and non-resident buyers. HMRC statistics show total residential SDLT receipts of £8.6bn in 2023–24. The academic literature, including Hilber & Lyytikäinen (2017) in the Journal of Urban Economics and the Mirrlees Review, documents the effects of transaction taxes on household mobility and economic efficiency.

Policy evaluation, not advocacy. Property Tax Lab analyses how property taxes work and what the evidence says about their effects. We present the research literature faithfully and in full, including findings that are contested or inconclusive.

Authoritative sources. We use official government statistics, Land Registry data, and peer-reviewed research. We cite primary sources throughout and flag clearly where data is incomplete or estimated.

Transparent methodology. Our scenario models, including revenue-neutral Council Tax calculations, set out their assumptions explicitly. Where we make estimates (for example, in our HVCTS property-count methodology), we explain the basis and the margin of uncertainty.

Independence. Property Tax Lab is not affiliated with any political party, lobbying organisation, or industry group. Our analysis is funded independently and is free to access.

Property Tax Lab was founded by Michael Dent, co-founder of what3words and founder of PropertyData. His background in economics, combined with a long-standing interest in how tax design shapes incentives, growth, and distributional outcomes, underpins his interest in the UK property tax system. More about Michael →