The Fairer Share Team

The Government Consultation on Council Tax Administration: A Step in the Right Direction

On June 20, 2025, the Ministry of Housing, Communities and Local Government launched a long-overdue consultation on modernising council tax administration.

The government acknowledged that current rules haven’t been meaningfully updated in decades and openly invited ideas to create an improved system. We gratefully took the opportunity to put forward our proposal for property tax reform for a system that's fairer, more efficient, and better aligned with local needs.

They’re asking for views on several improvements, including:

1. Payment plans & billing changes – Expanding default council tax payments from 10 to 12 monthly instalments and improving bill transparency to support household budgeting.

2. Support system overhaul – Refreshing outdated supports like mental impairment discounts and care‑worker exemptions.

3. Smarter enforcement – Adjusting liability order timelines and capping associated charges to avoid trapping people in unmanageable debt.

4. Efficiency gains – Encouraging councils to embrace innovation and reduce internal barriers.

5. Local funding fairness – Part of a holistic review aimed at reshaping how councils are financed via the “Fair Funding Review 2.0”

This signals government recognition that council tax is severely broken and they’re seeking constructive input, which we welcome greatly.

Fairer Share’s Submission: Pragmatic, People-Centred & Fair

We responded to Question 32—"How can we ensure council tax is paid fairly and efficiently?"—with solutions addressing root causes of the system’s failures:

1. Shift liability to property owners, not tenants

Currently, councils chase 9.3 million renters - an inefficient and often fruitless task. Instead, moving responsibility to the 513,000 private landlords and 1,600 social providers would improve collection, Reduce admin costs (saving  an estimate £400 million/year), and align liability with ownership, similar to business rates.

2. Introduce an optional deferment scheme

For households that are asset-rich but cash-poor, such as pensioners, allow them to defer payments (with modest interest), due only when a property is sold or inherited. This mirrors successful models in countries like Denmark and protects vulnerable households without cutting public funding.

3. Update 1991 valuations

Our proposal is to replace unreliable, outdated council tax bands with market‑linked property valuations or modern proportional bands. This would:

• Restore accuracy and public confidence,

• Improve perceptions of fairness,

• Boost voluntary compliance.

4. Integrate digital systems

By syncing council tax with HMRC and DWP data, councils can proactively identify hardship situations, reduce fraud or errors, and direct support more effectively.

5. Embrace shared admin systems

Many councils duplicate back-office systems. We suggest pooling infrastructure so councils can focus on local leadership—not repetitive admin.

6. Move away from bailiffs

Enforcement via bailiffs adds financial and emotional strain on struggling households. We propose:

• Creating local “breathing space” repayment plans,

• Shifting to income-based recovery models. This supports repayment without punitive escalation.

Why This Matters

We applaud the government for opening the door to reform but piecemeal changes won’t be enough. Fairer Share’s submission shows how structural, system-wide redesign can address chronic issues:

• Ridiculously high arrears? Solved by simplifying who pays.
• Outdated valuations? Fixed with real-time property data.
• Harsh enforcement? Replaced with fairness-focused recovery.
• Council fragmentation? Tackled with shared digital infrastructure.

By reassigning liability, introducing deferment, and modernising billing, we can dramatically reduce costs, increase compliance, and protect families in hardship, all while funding vital local services sustainably.

What Happens Next?

The government will review consultation responses and draw up a formal plan, expected in the coming months as part of its “Fair Funding Review 2.0”. Fairer Share is calling for the solutions our submission outlines to be adopted in full.

A System Fit for the 21st Century

Council tax reform isn’t just a policy exercise - it’s a test of our ability to support local communities fairly and sustainably. We suggest brought real-world solutions: moving liability to owners, protecting vulnerable individuals, updating valuations, and removing punitive bailiff tactics.

This consultation is a golden opportunity. We look forward to working with government and councils to make council tax what it should be: simple, fair, and reliable.

by The Fairer Share Team

Setting Local Government Free: Why the Proportional Property Tax Empowers Councils

In recent weeks, growing alarm over the fragility of local council finances has sparked debate - not least over whether replacing Council Tax with a national Proportional Property Tax (PPT) would risk further centralising power in an already overextended state. It is a fair question. But it also reveals a fundamental misunderstanding of what Council Tax is today, how distorted and inequitable it has become, and how the PPT can enable, not suppress, local democracy.

Council Tax: Local in Name Only

Let us be clear: Council Tax is not a local tax in any meaningful democratic sense. It is based on property valuations frozen in 1991, determined and maintained by central government. Local authorities operate within a rigid framework set by Whitehall, with limited discretion over bands, caps on increases, and ever-increasing complexity in exemptions and subsidies.

This is not localism. This is an outdated, opaque, and centrally imposed tax that punishes those in modest homes in low-income areas, and protects million-pound property owners in high-value postcodes.

A Smarter, Fairer Foundation

The Proportional Property Tax, in contrast, brings fairness, transparency and simplicity. It links what people pay to what their property is actually worth today, a principle that should be the bedrock of any serious property taxation system. Crucially, it does not remove fiscal responsibility from councils; rather, it provides them with a broader, fairer, and more sustainable tax base from which to deliver services.

Under PPT, local authorities retain discretion over how to spend the funds they raise. Fairer Share has always been open to local calibration mechanisms - such as local multipliers, hardship relief schemes, or ring-fenced supplements for infrastructure. Councils could have more tools, not fewer, under a modernised system.

Empowering Councils, Not Undermining Them

Our proposal empowers local government not just with better funding, but with a mandate to be honest and transparent with their residents. The current Council Tax system thrives in shadows - with arbitrary banding, invisible subsidies, and bewildering bureaucracy. PPT, by contrast, is built to be clear and accountable.

It is also worth addressing the broader political fear: that reform will be used to consolidate control in Westminster. That is neither our aim nor our recommendation. In fact, we see PPT as an opportunity to spark a genuine fiscal devolution conversation. Give local authorities a modern revenue base, and then let us talk about what powers should follow.

The Real Threat to Local Democracy

The real overreach is clinging to a system that no longer works, and pretending that inaction is a defence of localism. It is not. Local government is being hollowed out by stealth, forced into impossible budget decisions under an archaic tax regime that penalises prudence and entrenches inequality.

Give councils the foundation they need to thrive. The Proportional Property Tax is not about centralising power. It is about setting local government free.

by The Fairer Share Team

Andrew Dixon | Labour's Red Wall Gamble: Why Council Tax Reform Can't Wait

Andrew Dixon OBE, Founder and Chairman of Fairer Share

May's local elections delivered a sobering message to Labour: voter discontent is real, growing, and increasingly dangerous to the party's future. While Labour held most councils, the results revealed troubling undercurrents such as lower turnouts in traditional strongholds, protest votes for independents, and ominous gains for Reform UK in working-class areas. The warning is clear: without bold action on the issues that matter most to ordinary families, Labour risks losing the trust that secured its historic victory.

One issue stands out as both a symbol of systemic unfairness and an immediate opportunity for Labour to show it understands working families' struggles: the broken Council Tax system that penalises the poor while protecting the wealthy.

A System Rigged Against the Red Wall

Council Tax, frozen in 1991 valuations, has become one of Britain's most regressive taxes. The injustice is stark and personal. A family in a £230,000 home in Hartlepool pays over £2,000 annually in Council Tax - a crushing burden on modest incomes. Meanwhile, a household in an £8 million Westminster mansion pays proportionally far less, their effective rate a fraction of what working families bear.

This is not just unfair but also politically toxic. In May's elections, we saw glimpses of what happens when voters feel the system works against them. Reform UK's surprise council gains, independent candidates winning on local grievance platforms, and Labour's uninspiring vote shares in traditional heartlands all point to the same conclusion: people are angry about being overlooked by a rigged system.

The Farage Factor Gets Real

May's results showed Reform UK is not just a protest movement. It is becoming an electoral force. While their council victories were modest, their vote shares in Labour heartlands were anything but. In areas where traditional Labour voters feel abandoned, Reform UK offered simple messages about unfairness and neglect that resonated.

Nigel Farage does not need detailed policy solutions; he needs grievances to exploit. Council Tax is so obviously unfair that any populist can attack it credibly. If Labour continues to avoid reform, it hands Farage a ready-made weapon: "Labour talks about fairness but won't even fix the tax system that hammers working families while protecting millionaires."

A Solution That Delivers for Labour Voters

The remedy is overdue. Fairer Share has long advocated replacing Council Tax and Stamp Duty with a Proportional Property Tax (PPT): a fixed percentage of current property values that would be fairer, more transparent, and less regressive.

Our analysis shows 77% of households would pay less under PPT, with the biggest gains in Red Wall constituencies. For working families struggling with cost-of-living pressures, this would provide immediate, tangible relief. For Labour, it would demonstrate that the party remembers who it serves.

The political benefits are compelling:

• Direct financial relief for the families who elected Labour
• Regional rebalancing that corrects decades of southern bias
• Moral authority to speak about fairness and inequality
• Neutralising populist attacks by fixing an obviously broken system

Lessons from May: Act or Face the Consequences

May's elections contained a crucial lesson: voters will punish parties that take them for granted, even if the alternative seems unpalatable. Independent candidates won seats by simply listening to local concerns. Reform UK gained ground by acknowledging working-class frustrations that mainstream parties ignored.

Labour cannot assume loyalty will last forever. The party's Red Wall gains were built on promises of change and fairness. If those promises ring hollow, if Labour governs like just another party that protects the comfortable while asking the struggling to wait, voters will look elsewhere.

Council Tax reform offers Labour a chance to prove its commitment to working families is real, not just electoral rhetoric.

The Alternative to Painful Tax Hikes

While Angela Rayner explores wealth taxes and a freeze on income tax thresholds, Labour is missing an obvious alternative that would be both fairer and more popular. Rather than imposing additional taxes that risk further alienating voters, Council Tax reform offers a path to increased revenue while reducing bills for most families.

The contrast is stark: Rayner's proposals target specific groups with additional levies, creating new grievances and political flashpoints. Proportional Property Tax, by contrast, would modernise the entire system, making it fairer while generating sustainable revenue growth tied to property values rather than political decisions.

This is not a fringe cause.  The All-Party Parliamentary Group on Council Tax Reform, which I proudly support, was launched by Jonathan Brash (MP for Hartlepool) and has built genuine cross-party momentum. The issue resonates across constituencies, from Red Wall families to young urban renters struggling with housing costs to suburban homeowners who see the system's obvious unfairness.

Time Is Running Short

Council Tax reform embodies everything Labour claims to stand for: fairness, equality, and creating a system that works for ordinary people rather than protecting privilege. The current setup does the opposite. It entrenches inequality, deepens regional divides, and penalises those who can least afford it.

Every month Labour delays gives opponents more ammunition. Reform UK will continue exploiting grievances about unfairness and neglect. The Conservatives will eventually discover they can attack Labour from the left on this issue. Independent candidates will keep winning seats by promising to fix what mainstream parties ignore.

Labour built its majority on promises of change. The Red Wall trusted the party to remember where it came from and who it serves. Council Tax reform is not just policy but a test of whether those promises mean anything.

The May elections were a warning shot. Labour can heed that warning by taking bold action on the issues that matter most to working families, or it can continue business as usual and hope loyalty lasts forever.

by The Fairer Share Team

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.

by The Fairer Share Team

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.

by The Fairer Share Team

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.

by The Fairer Share Team

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.

by The Fairer Share Team

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.

by The Fairer Share Team