Research shows that Londoners are under-paying property taxes by £3.1 billion relative to the value of their homes

Research published by the Resolution Foundation details the amount of tax revenue raised from property (broadly Stamp Duty Land Tax and Council Taxes).

25 Sep 2026

Research published by the Resolution Foundation details the amount of tax revenue raised from property (broadly Stamp Duty Land Tax and Council Taxes). It concludes that Londoners are under-paying by £3.1 billion relative to the value of their homes whilst the rest of England are over-paying in return.

For example, 85% of households in the North East are expected to overpay tax relative to the value of their homes by the end of the decade, with the average overpayment expected to reach £710 in 2030/31.

Cited reasons for this include not taking into account four decades of house price growth in Council Tax calculations and poor design of the relevant taxes.

Suggestions proposed include moving to a proportional property tax system and an abolishment of Stamp Duty Land Tax on primary residences, although it is noted that any reform would need to be gradual and carefully handled.

Hannah Aldridge, Senior Research and Policy Analyst at the Resolution Foundation, states:

'The economic and fairness case for overhauling our housing taxes are clear. But the politics of reform has got hung up on those who lose out – such as those living in gentrified areas of London – even though most households in England would pay less tax.'

Internet link: Resolution Foundation