Andrew Dixon | Britain's Housing Crisis: Why Tax Reform Must Come Before New Supply

Andrew Dixon, Founder and Chairman of Fairer Share

Sarah, a 28-year-old teacher in Manchester, earns £28,000 a year but still lives with her parents. Despite working full-time in a profession society values, she cannot afford even a studio flat in her hometown. Meanwhile, her elderly neighbour rattles around in a four-bedroom house she'd love to leave but can't afford to sell due to stamp duty costs. This isn't a housing shortage problem: it's a tax system failure.

The Financial Times recently highlighted Britain's growing generational fault line: adult children returning to family homes, squeezed by high rents and a dysfunctional housing market. But focusing solely on building more homes misses the deeper structural rot in our property tax system - a system that actively prevents the housing market from working for ordinary families.

The Hidden Tax Scandal

Britain's property taxes are among the most unfair in the developed world, yet this scandal hides in plain sight. Council Tax, still based on 1991 property values, creates grotesque inequalities. A family in a modest Blackpool terrace can pay a higher effective rate than someone in a £5 million Westminster mansion. This isn't just unfair; it's economically destructive.

Stamp duty compounds the problem by creating what economists call "transaction friction." It traps families in homes that no longer suit their needs, preventing the natural flow that would see older homeowners downsize and young families move up. The result? 1.4 million older homeowners tell surveys they want to downsize but feel financially penalized for doing so.

Beyond the Numbers: Human Cost

These aren't just statistics - they represent broken dreams and constrained lives. Young couples delay starting families because they can't afford family-sized homes. Essential workers like teachers, nurses, and police officers are priced out of the communities they serve. The generational contract that saw each cohort achieve homeownership earlier than their parents has shattered.

Renowned economics commentator Martin Wolf captured this perfectly when he wrote:

"Council tax and business rates make up the residue of an older and more rational system of property taxation. The Fairer Share manifesto provides a compelling attack on council tax. It should be reformed, together with business rates and stamp duty, and incorporated into a system of property taxation that is less unjust and encourages new development and more efficient use of developed urban land."

A Practical Solution

At Fairer Share, we propose replacing Council Tax and Stamp Duty with a Proportional Property Tax - a single, fair rate applied to current property values. This isn't radical redistribution; it's basic fairness. Around 75% of households would pay less, while the system would finally ask those in the most valuable properties to contribute proportionately.

The benefits cascade through the system. Older homeowners could downsize without tax penalties, releasing family homes for younger buyers. Property transactions would flow more freely, making the market more responsive to changing needs. Local councils would gain stable, growing revenue streams tied to actual property values, not 30-year-old guesswork.

The Cost of Inaction

Every year we delay costs us dearly. Young people make life decisions based on a broken housing market - moving away from family support networks, postponing children, accepting long commutes that steal hours from their lives. Communities lose essential workers who can no longer afford to live where they work. The economic dynamism that comes from labour mobility withers.

We welcome Labour's planning reforms and commitments to accelerate development decisions. But planning reform alone cannot fix a market distorted by perverse tax incentives. You cannot build your way out of a problem caused partly by a tax system that prevents optimal use of existing housing stock.

The Moment for Change

This government has the political capital to tackle long-overdue reforms. Property tax reform polls well because people understand fairness. Unlike many policy challenges, this one has a clear solution with broad benefits and identifiable winners: ordinary families currently locked out of homeownership or trapped in unsuitable homes.

The housing crisis has become a symbol of Britain's broader dysfunction; a country where hard work no longer guarantees basic security, where each generation faces worse prospects than the last. Proportional Property Tax won't solve every housing problem, but it addresses the systemic unfairness that makes our dysfunctional market even worse.

For too long, we've treated housing as a commodity to be hoarded rather than a foundation for family life and community building. The current system serves incumbents while punishing aspiration. It's time for a tax system that works for the Britain we want to become, not the inequalities we've inherited.

Sarah the teacher deserves better than a childhood bedroom in her parents' house. So does every young person whose life chances have been diminished by a property tax system designed in 1991. The question isn't whether we can afford to reform; it's whether we can afford not to.


Time for Labour to Act Like a Government of Change - Not Just Continuity

The UK’s property tax system isn’t just outdated - it’s unjust. For decades, both Labour and Conservative governments have tiptoed around reform, content to manage a broken status quo rather than fix it. The thing is, the country didn’t vote for continuity at the last election. It voted for change.

And yet, when it comes to the core issues of fairness - how we fund our local services, how we tax homes, and how we unlock housing mobility - the silence has been deafening.

Peter Sagar’s recent article in North East Bylines captures a frustration that many feel across the country: that a Labour government should be doing more to deliver on the promise of economic justice. We couldn’t agree more.

Council Tax Reform Can’t Wait Any Longer

Council tax is one of the most regressive taxes in Britain. Based on property values from 1991, it places a heavier burden on people living in modest homes than those in mansions. A terraced house in Sunderland often pays more, proportionally, than a townhouse in Westminster.

Sagar points to the administrative complexity of the system - exemptions, discounts, income-based reductions, confusing application processes - which create more work for councils and more confusion for residents. That bureaucracy isn’t just inefficient. It’s unfair.

We have long argued that this system is beyond repair. It’s time to replace council tax with a modern, proportionate tax based on what your home is actually worth today. That’s the only way to ensure people contribute fairly - and that communities have a stable, transparent way to fund essential services.

Stamp Duty Locks Up the Housing Market

Stamp duty is the silent handbrake on Britain’s housing system. It punishes movement. It discourages downsizing. It adds thousands of pounds in cost to buyers already squeezed by deposits and mortgage rates.

As Sagar argues more broadly, it’s not enough for this government to tweak around the edges. Real reform means rethinking the way we raise revenue from housing - not just applying new coats of paint to tired systems.

Fairer Share’s proposal is simple: scrap stamp duty and council tax, and introduce a single, proportional property tax based on real property values. One system, one payment: fair across the board.

If You Want to Beat the Far Right, Start With Fairness

There’s another reason this matters. When people feel the system is rigged, they don’t always turn to better ideas - they turn to louder ones.

Sagar is right to warn that a failure to deliver tangible economic fairness risks fuelling resentment and disillusionment - the same conditions that far-right movements thrive on. Council tax is a perfect case study: a tax that hits the poorest hardest, is impossible to understand, and has no credible justification for the way it's calculated.

People see a neighbour in a bigger home paying less. They see millionaires avoiding stamp duty with loopholes. They see public services shrinking while their bills go up. And when no mainstream party fixes it, that anger gets redirected - often at the wrong targets.

A proportional property tax would not only be fairer; it would be legible. It would show that government still works in the interests of ordinary people. And it would start to rebuild the trust that extremists feed on when they claim “nothing ever changes.”

Fairer taxation is a political strategy, not just a policy fix.

The North Deserves More Than Rhetoric

Sagar rightly highlights Preston’s community wealth-building model as a beacon of practical, localised reform. But this approach needs funding. It needs local authorities to have the financial tools to shape their communities - not rely on year-to-year begging bowls and arbitrary settlements.

Reforming property tax isn’t just a technical fix. It’s a pathway to giving regions like the North East the control they need, and the investment they’ve been denied for far too long.

If Not Now, When?

It’s easy to blame the previous government for the mess. And yes, after 14 years of political instability, inconsistency and service cuts, Labour has inherited a daunting challenge.

But the longer it waits, the more this opportunity slips away.

Fairer Share believes that property tax reform is the low-hanging fruit. It’s popular. It’s logical. It’s overdue. And it would show millions of people that this government is willing to take bold decisions - not just preserve the old ones.


UK Housing Market Expert Calls For End to Stamp Duty

A recent Financial Times column brings fresh urgency to a longstanding problem: Britain's housing market is stuck - and stamp duty is a big part of the reason.

In a personal and pointed reflection on the cost of moving house, residential property expert Neal Hudson paints a familiar picture for many families: outgrowing their homes but unable to afford the leap to something bigger. Stamp duty, high house prices, and slow wage growth have conspired to freeze mobility and lock people into unsuitable housing. For campaigners like us at Fairer Share, it’s yet more evidence that our property tax system is overdue for reform.

The Issue: Fewer Movers, Less Fairness

Once upon a time, the housing market promised progression. First-time buyers could start small and “move up the ladder” as their families and incomes grew. That promise is breaking down.

Homeowners are moving far less than they used to. According to the article, quarterly sales across England and Wales are now 27% lower than they were before the 2008 financial crash — with today’s transaction levels resembling the depths of the early 1990s housing slump.

Why? It’s not just rising house prices. It’s that the costs of moving - especially stamp duty - make the next step feel financially impossible for many. When it costs tens of thousands of pounds just to move, people stay put, even when their homes no longer fit their lives.

And that has knock-on effects: fewer transactions mean less labour mobility, lower tax revenue, and a housing market that can’t adapt to demand.

Who’s Being Affected?

The article highlights that today’s homeowners are older and more settled, while younger people are increasingly locked out. Those who did manage to get on the ladder - often after significant struggle - are now stuck on the same rung.

Hudson reports that a growing share of middle-aged homeowners are still living in the first home they ever bought. That’s not because they want to, but because moving up is no longer realistic. The dream of gradual progression has become just that: a dream.

Why Stamp Duty Matters

One of the biggest barriers to moving is stamp duty land tax - a charge that penalises anyone looking to relocate, regardless of their reason. As Hudson writes, it's a “stupid tax” that you would never design from scratch. Its distorting effect on the market is now undeniable.

First introduced as a minor administrative fee, stamp duty has ballooned into a major cost that deters movement and dampens the whole housing economy. It punishes the very behaviour we should be encouraging: using our housing stock efficiently, downsizing when needed, and allowing growing families to find space.

A Better Way Forward

At Fairer Share, we’ve long argued for the abolition of stamp duty and council tax, to be replaced with a single Proportional Property Tax – one that’s based on the actual value of your home, and your ability to pay. This would eliminate the barriers to moving, while ensuring fairer contributions from those with the most valuable properties.

It would also reduce the dysfunction currently baked into the housing system. Under our proposals, more people could move home when they needed to – not just when they received a windfall or inherited equity.

Time for Political Courage

Unfortunately, as the article notes, “the current government doesn’t appear willing to grasp that massive political nettle.” Reforming property taxes has long been seen as too risky. But the cost of inaction is mounting. Families are stuck. Jobs are missed. Communities are strained.

The housing market cannot keep relying on perpetual price growth to function - especially when that growth is increasingly out of step with wages. We need a system that supports homeowners at every stage of life, not one that punishes ambition or forces people to compromise indefinitely.


We believe it’s time to fix the broken ladder. Join us in calling for a property tax system that works for everyone - not just those already at the top. Visit fairershare.org.uk/supporters to find out who we have backing us from the political sphere. Is your MP missing? Let them know!


Martin Lewis Secures Government Pledge to Reform Council Tax Debt Collection

Martin Lewis, the UK's most trusted consumer advocate, has achieved a significant milestone in the campaign for fairer council tax practices.

Following persistent efforts by Lewis and his charity, the Money and Mental Health Policy Institute (MMHPI), the government has announced a consultation to address the aggressive methods currently employed in council tax debt collection.

This move is a major win not just for Lewis and MMHPI, but for campaigners across the board – including Fairer Share – who have long called for a more compassionate and modern approach to property taxation. It reflects a growing consensus that the current council tax system is outdated, regressive, and in urgent need of reform.

The Issue: A System in Need of Reform

Under existing regulations, missing a single council tax payment can lead to severe consequences. Within three weeks, councils can demand the full annual amount, and if unpaid, escalate the matter to court, adding fees and potentially involving bailiffs - all within a six-week period. Lewis has described this process as "the most vicious and aggressive form of debt collection" in the UK, highlighting its disproportionate impact on vulnerable individuals, particularly those with mental health challenges.

Government Response: A Step Towards Fairness

In a recent interview on ITV's Good Morning Britain, Chancellor of the Duchy of Lancaster Pat McFadden acknowledged the issue and confirmed that the government will consult on changing these practices. The proposed consultation aims to allow a reasonable period for individuals to repay their debts, moving away from the current rapid escalation model.

Emotional Victory for Campaigners

Lewis expressed his emotional response to the announcement, stating, "I'm a bit teary, if I'm honest. In a good way, though, because I just had a win that I wasn't expecting." He emphasised the devastating impact the current system has had on countless individuals and expressed hope that this consultation marks the beginning of meaningful change.

Broader Support and Implications

The MMHPI and other organisations have welcomed the government's decision. Helen Undy, Chief Executive of the MMHPI, remarked, "We are absolutely delighted that the Government has listened to sense and is taking the first steps towards making council tax debt collection fairer".

This development aligns with Fairer Share's ongoing advocacy for a proportional property tax system that is equitable and reflective of individuals' ability to pay. The current council tax framework, with its outdated valuation bands and punitive collection methods, underscores the need for comprehensive reform.

Looking Ahead

As the government moves forward with the consultation, stakeholders and citizens alike have an opportunity to contribute to shaping a more just and compassionate approach to council tax collection. Fairer Share remains committed to supporting initiatives that promote fairness and equity in property taxation.

For more information on Fairer Share's proposals and how they stand to benefit homeowners and local areas alike, head to our policy page.


Leading UK Economist Endorses a Proportional Property Tax

This week, a powerful voice joined the growing consensus that Britain’s property tax system is broken - and ready for reform.

In a striking piece for The Times, David Smith, the long-standing Economics Editor of the Sunday Times, lays bare the outdated, unjust, and economically damaging state of UK property taxation. His conclusion? It's time to scrap both stamp duty and council tax and replace them with a fairer, proportional property tax.

At Fairer Share, we've been making this case for years. What’s new - and vital - is that mainstream, respected economists like Smith have been adding their weight to the movement for reform.

A Broken System: Regressive, Outdated, and Counterproductive

As Smith writes, "Britain taxes homes in a way that is outdated, damaging and economically outdated." He highlights two core problems:

  • Council tax, based on 1991 property valuations, is deeply regressive. A three-bed semi in Blackpool can attract a bigger council tax bill than Buckingham Palace. Those in modest homes pay proportionally far more than those in mansions.

  • Stamp duty is a tax on mobility, disproportionately penalising people for moving; whether that’s downsizing, relocating for work, or finding a family home. It discourages sensible housing choices and chokes up the market.

Both taxes increased recently, hitting households at a time when costs are already high. Council tax bills have risen by an average of 5%, with a typical Band D property in England now paying £2,280. Meanwhile, the return to a lower zero-rated band for stamp duty means someone buying an average-priced home (£291,000) will now face a tax bill of £4,550 — a £2,500 hike overnight.

A Better Way: Proportional Property Tax

Instead of tweaking a broken system, Smith advocates for replacing it entirely with a proportional property tax (PPT) - exactly the kind of solution Fairer Share has championed.

He references proposals from Professor Tim Leunig of the London School of Economics, laid out in A Fairer Property Tax, a paper for the think tank Onward. Leunig, who was instrumental in designing the UK furlough scheme, calls for a tax based on the current value of a property; a transparent, economically rational model that would align tax liability with ability to pay.

Fairer Share’s version of the proposal is clear and deliverable: abolish council tax and stamp duty, and replace them with a proportional property tax levied at 0.48% of a home’s value. That would mean:

  • A £200,000 property pays £960 a year

  • No arbitrary bands or outdated valuations

  • Taxation based on real property values, fairly and simply applied

Addressing Common Concerns

What about the “asset rich but cash poor”, like pensioners in expensive homes? Smith is clear that this challenge is solvable. Fairer Share has proposed a cap ensuring no existing owner pays more than £1,200 more than they would under council tax. Only new buyers would face the full rate - a fair, transitional measure that avoids forcing people out of homes while enabling long-term reform.

Other ideas include spreading the cost of stamp duty (or its replacement) over 20 years via government loans, as suggested by the Tony Blair Institute, or applying a cap to prevent eye-watering bills on high-value properties.

The Case for Change Is Building

As Smith notes, economists and think tanks from across the spectrum are aligned. Professor Charles Goodhart advocates a land value-based version of the tax. The Tony Blair Institute recommends a phased introduction. The 2011 Mirrlees Review — led by Nobel laureate Sir James Mirrlees — also called for replacing council tax and stamp duty with a more rational, unified system.

These are not fringe ideas. They are serious, evidence-based solutions to one of the most flawed parts of Britain’s tax system.

The Political Opportunity

As Smith concludes, any chancellor bold enough to fix this would earn the respect of experts and the gratitude of voters. Reform would be progressive, economically sound, and potentially revenue-raising - all while reducing distortions in the housing market.

Yet so far, there’s been silence from the Treasury. That’s why we must keep pushing.

You can read David Smith's full piece in The Times here.


Why First-Time Buyers and Young Families Struggle to Get on the Property Ladder

For many first-time buyers and young families, owning a home feels further out of reach than ever. Over the past two decades, the average UK house price has surged from approximately £70,000 in 1998 to £224,000 in 2018, more than tripling in value. As of January 2025, the average house price stands at £267,200. This rapid increase has significantly outpaced wage growth, making homeownership increasingly unaffordable. In 2023, the average house price was 8.6 times the average annual disposable household income, up from 4.4 times in 1999.

These financial barriers have led to a decline in homeownership among young adults. In 2022–23, only 39% of individuals aged 25 to 34 owned their homes, a significant drop from 59% in 2000. This decline is particularly pronounced in urban areas like London, where only 26% of young residents own a home with a mortgage, compared to 36% outside the capital.

Even after securing a mortgage and purchasing a home, financial challenges persist. Ongoing expenses such as Council Tax, maintenance, and rising utility bills add to the financial strain, making it difficult for young homeowners to manage their budgets.​

With homeownership becoming increasingly difficult for young people, it's crucial to examine the factors hindering their ability to buy and own homes. Implementing policies that address these issues can help make homeownership more attainable and equitable for future generations.

The Barriers to Buying a First Home

Saving for a Deposit Takes Longer Than Ever

House prices have risen far faster than wages, making it increasingly difficult for young buyers to save enough for a deposit. In many parts of the country, buyers now need between £30,000 and £50,000 upfront just to secure a mortgage.

According to the Resolution Foundation, it now takes the average first-time buyer around 9 years to save for a deposit - and that's assuming they can save regularly. For many, homeownership is only possible with significant financial support from family, often dubbed the 'Bank of Mum and Dad'. In fact, more than half of all first-time buyers under 35 now rely on family help to get on the property ladder.

Meanwhile, rising rents are making it even harder for renters to save. With average rents hitting record highs, young people are often stuck in a cycle where they’re paying more each month in rent than they would on a mortgage - but can’t build up the deposit to break free.

Mortgage Affordability is a Growing Issue 

Even with a deposit, getting a mortgage is tougher than it used to be. Higher interest rates mean monthly repayments are more expensive, making lenders more cautious about approvals.  Many buyers are forced to take out longer mortgages (35-40 years) just to make payments manageable, increasing their overall debt.

First-Time Buyers Are Priced Out of Their Local Areas

Many young people find themselves pushed further away from where they grew up or work because local prices are too high. This means longer commutes, higher transport costs, and difficulty accessing family support for childcare. Some areas have seen a rise in second-home buyers and investors, driving up prices and pushing out locals.

The Hidden Costs of Homeownership

Once buyers secure a mortgage, they often underestimate the ongoing costs of owning a home.

These include:

  • Council Tax - which can be surprisingly high, especially in lower-cost areas.
  • Repairs and maintenance, which renters typically don’t have to worry about.
  • Service charges in flats and leasehold properties, which can be an unexpected financial burden.

And we can’t forget Stamp Duty - a one-off cost paid upfront at the time of purchase. Unless they qualify for first-time buyer relief, many buyers still face thousands in additional charges just to complete the purchase. It’s another hurdle at a time when affordability is already stretched thin.

How Can We Make Homeownership Fairer for First-Time Buyers?

There’s no single fix, but policy changes could ease the financial strain on first-time buyers and young families, helping more people get on the property ladder.

One of the biggest hidden costs for homeowners is Council Tax - an outdated system that doesn’t fairly reflect property values. Many young buyers moving to affordable homes in lower-value areas end up paying disproportionately high Council Tax bills, which eat into their monthly budget.

And then there’s Stamp Duty, a one-off charge that adds thousands to the cost of buying a home. For buyers looking to move up the property ladder - especially growing families - this can be a major barrier.

Switching to a Proportional Property Tax (PPT) would make homeownership fairer by ensuring everyone pays the same percentage of their property’s actual value - not an outdated amount based on 1991 prices. It would also scrap Stamp Duty altogether, removing a major upfront cost for buyers.

This would mean:

  • Lower annual bills for most first-time buyers and young families
  • No Stamp Duty for anyone, at any stage of the ladder
  • A tax system that reflects the true value of homes today
  • More financial breathing room for those just starting out

For years, politicians have promised to help first-time buyers - but schemes like Help to Buy and shared ownership haven’t tackled the deeper issue: the cost of owning a home is unfairly high, especially for those just starting out.

A fairer tax system - like Proportional Property Tax - would not only ease the burden, but give a generation of would-be homeowners a fighting chance to get ahead.

If we want future generations to have a fair shot at homeownership, we need action now.
Join the movement for a modern, fair property tax system - because owning a home shouldn’t be a luxury, it should be an achievable goal for everyone.

Read more from Lord David Willetts here on why Council Tax reform is key to bridging the generational divide.


Debunking the Myths: Common Misconceptions About Proportional Property Tax

When discussing tax reform, particularly a shift to Proportional Property Tax (PPT), misinformation can spread quickly. Some people assume it’s just another way to raise taxes, while others fear it could hurt homeowners. In reality, PPT is designed to be fairer, simpler, and more affordable than Council Tax.

Let’s break down some of the most common myths and set the record straight.

 

Myth 1: “PPT is Just Another Tax Increase”

Reality: PPT isn’t about raising more tax - it’s about taxing fairly. Under the current system, Council Tax is based on property valuations from 1991 - more than 30 years out of date. That means millions of people in modest homes are paying far more than their fair share, while those in high-value properties often pay less as a proportion of their home’s true value.

The PPT would replace Council Tax and Stamp Duty with a simple, transparent tax: 0.48% of a property’s current value. Nothing more, nothing less. It doesn’t raise more money overall - it’s revenue neutral - but it redistributes the burden more fairly across the country.

Under this fairer model, 77% of households would pay less than they do now, with average annual savings of £556. Families in lower and mid-value homes would benefit the most – while those in the highest-value properties would contribute more in line with the true value of their assets.

This isn’t about punishing success. It’s about modernising a broken system so that everyone pays their fair share based on what their property is actually worth today – not what it was worth in 1991.

Myth 2: “Homeowners Will Be Forced to Sell Their Homes”

Reality: Some worry that switching to a proportional system could push homeowners out of their properties. In fact, PPT is designed to reduce unfair financial pressure, not increase it.

Many pensioners and families currently struggle with Council Tax bills that are disproportionately high for their home’s value. PPT would create a fairer system where those in modest homes pay less, while wealthy homeowners pay their fair share.

Plus, there could be safeguards such as deferral schemes for pensioners and gradual phase-in periods to ensure no one faces sudden financial hardship.

Myth 3: “Landlords Will Just Pass the Costs Onto Renters”

Reality: While some landlords may pass on part of the cost, most renters live in lower-value properties - meaning they’ll still benefit overall.

Under the current system, renters are hit hard. Although Council Tax is technically a property tax, it’s tenants – not landlords – who pay it. This often means people renting modest homes are charged a higher effective tax rate than those living in much more expensive properties.

With a PPT, the responsibility for paying the tax would shift to the property owner – the landlord – not the tenant. While some of this cost may be reflected in rent over time, most rental properties are in lower-value bands. That means the overall tax bill on these properties would go down under PPT – and with it, the pressure to raise rents.

This shift would create a fairer, more transparent system. Landlords would pay tax based on what their property is actually worth, and renters would no longer carry the disproportionate burden of a broken Council Tax system.

Myth 4: “Council Tax Reform Isn’t a Priority Right Now”**

Reality: The cost-of-living crisis means people are struggling more than ever. Council Tax bills are rising across the country, but because the system is so outdated, the increases don’t affect everyone fairly.

Switching to PPT would immediately reduce tax bills for millions of households, providing much-needed financial relief without cutting local services.

Myth 5: “The Current System Works Fine”

Reality: The Council Tax system is fundamentally broken. A home in the North of England worth £100,000 might pay the same (or more) in tax than a London townhouse worth £1 million. That’s because Council Tax bands haven’t been updated since 1991, meaning people in cheaper homes are stuck overpaying while the wealthiest homeowners contribute far less than they should.

PPT would eliminate this outdated, unfair system and introduce a simpler, more transparent approach, where what you pay is directly tied to your home’s real value.

PPT isn’t about increasing taxes, it’s about fixing an unfair system that punishes ordinary families. By replacing Council Tax with a straightforward percentage-based tax, we can make homeownership and renting more affordable, fairer, and fit for the 21st century.

If you believe in a fairer tax system, support the campaign today! Sign up, spread the word, and help bring real change to the way we fund local services.  


A Cash Grab? No – It’s a Step Towards Fairness: Why Second Homeowners Should Pay Their Share

The TaxPayers’ Alliance has called the doubling of Council Tax on second homes a “naked cash grab.” Let’s be clear: what’s really unfair is the current system that punishes ordinary families while wealthy second homeowners get a tax holiday.

Here's why this isn’t a cash grab – it’s common sense:

Second Homes Drive Up Local Prices: In areas like Cornwall and North Norfolk, second homes sit empty for most of the year while local families are priced out of the communities they grew up in. This is not sustainable – or fair.

Council Tax is Already Broken: It’s based on 1991 values, which means someone in a small semi in Hartlepool pays more tax as a percentage of property value than someone in a luxury home in Westminster. Wealthy second-home owners benefit from this distortion.

Fair and Built-In: We support a Proportional Property Tax that replaces both Council Tax and Stamp Duty – and yes, it includes a second home surcharge built in at 0.96%. It’s a revenue-neutral reform that redistributes the tax burden more fairly, not one that raises it overall. Until we get there, second home premiums are one of the few levers councils can pull to ease local housing pressures and rebalance the system.

Usage and Impact: The idea that second homeowners “use fewer services” ignores the real issue: second homes reduce housing supply, drive up prices, and erode communities. Their impact goes far beyond bin collection.

The current system protects wealth at the expense of fairness. If the TaxPayers’ Alliance truly cared about ordinary taxpayers, they’d join us in calling for a tax system that reflects reality - not one that gives a free ride to the asset-rich.

It’s time for a property tax that’s modern, proportional, and fair. Second home premiums are a start - but Proportional Property Tax is the long-term solution.

Read more about what the TaxPayers' Alliance has to say here.

 


James’ Story: Why Council Tax is Pushing People to the Brink

We recently caught up with James, a retired 61-year-old from Preston, who has been living in his home since 2003. Over the years, James has watched his Council Tax bill skyrocket while struggling to see the benefits. His annual bill now stands at £2,100, his biggest expense, which he describes as a bigger financial strain than the energy crisis. Here's what James had to say during our chat.

"Council Tax is totally unfair"

James is deeply frustrated with the system. He moved from Luton, where he paid significantly less, and is angry at the huge regional disparities that make areas like Preston pay more while wealthier households contribute proportionally less. He also points out that Council Tax bands are still based on outdated 1991 valuations, meaning people are paying taxes that don’t reflect the true value of their homes today.

"Have I been overpaying?"

James has checked whether his home is in the correct Council Tax band, comparing it to other houses on his street. Most of the homes on his road are Band C, except for one mid-terrace house which is Band B. While his banding appears consistent, he still believes the entire system is flawed and punishes ordinary homeowners unfairly.

"Where is my money going?"

Despite paying thousands each year, James does not feel he is getting value for money. While he hasn’t personally noticed a decline in services, he believes a significant chunk of Council Tax is going towards council pensions rather than public services. He’s read that a quarter of Council Tax revenue goes into local authority pension schemes, leaving less for schools, policing, and local improvements.

"The rich get a better deal"

James finds it deeply unfair that wealthier households pay a lower share of their income in Council Tax than those on lower incomes. He has checked how much other areas pay and was shocked to find that Preston ranks high on the list of Council Tax burdens. For him, the current system punishes ordinary homeowners while protecting those with greater wealth.

"A Proportional Property Tax would halve my bill"

James is fully in favour of reform, believing that a Proportional Property Tax  would dramatically reduce his Council Tax bill and ease the financial strain on millions. He also supports the idea of scrapping Stamp Duty and believes the government should help older generations downsize more easily if they choose to.

"If nothing changes, there will be a revolt"

When asked what will happen if Council Tax continues to rise without reform, James doesn’t hold back: “More debt, more people struggling, and possibly even a revolt.” He feels that without intervention, more households will fall into Council Tax arrears, creating an unsustainable cycle of financial hardship.

"We need to speak out"

James wants others in similar positions to raise their voices. He has been involved in campaigning for winter fuel support with Age UK and believes that collective action can bring change. He also fully supports Fairer Share’s campaign for Council Tax reform, describing it as a crucial step towards levelling up.

For James, the North-South divide in taxation is unacceptable, and reforming Council Tax is essential for fairness and financial security. His message to the government is clear: “The current system is outdated and unfair - it’s time for a tax that reflects today’s reality, not the early ’90s.”


Council Tax Debate in the House of Commons: Where Were the MPs?

Council Tax is outdated, unfair, and punishing those who can least afford it – yet Parliament was nearly EMPTY for this crucial debate!

In this video, we bring you yesterday’s House of Commons debate on Council Tax reform, where Hartlepool MP Jonathan Brash delivered a powerful speech calling for urgent change. Alongside him, Grahame Morris, Luke Myer, and other MPs made valid and compelling arguments highlighting the deep unfairness of the current system.

A huge thank you to Jonathan for his excellent speech and to all the MPs who contributed to this important discussion. It’s time to fix this broken system and ensure a fairer way for everyone. It was great to see Fairer Share mentioned too, with Jonathan highlighting the need for a Proportional Property Tax – this is progress.

Shocking Facts from the Debate:

  • A Band A home in Westminster pays £648 a year, while in Hartlepool it’s £1,585 – more than double!
  • The system is based on property values from 1991 – 34 years out of date!
  • Council Tax in some areas takes 9% of median wages, while in Westminster it’s just 2%.
  • £6 billion in Council Tax debt is already owed – the system is broken beyond repair.

So why was the chamber almost EMPTY?

Tax reform is long overdue – yet only a handful of MPs showed up to debate a fairer property tax. Millions face an outdated, unfair system, but Westminster seems asleep at the wheel. We need action, not apathy

Take action!

Email your MP here and ask why they didn’t take part in this crucial debate on Council Tax reform. Let them know this issue matters!

Sign the petition for a fairer tax system here.