Economist:
Britain levies the highest property taxes of any OECD country, relative to GDP...Unfortunately, British property taxes are not well-designed. Rather, they distort the housing market and undertax the most valuable homes. ...The owner of a two-bed flat in Hartlepool today pays more council tax per year (£2,218) than someone with a ten-bed mansion in Westminster (£2,034).
... stamp duty—paid whenever a house changes hands—is growth-sapping. Although it raised £15bn in 2024-25, at over £40,000 on a £1m home it makes moving house very expensive, resulting in fewer transactions. Because people often move to take higher-paying jobs, inhibiting such moves means less-productive workers, undermining growth.
