Labour’s progressive property tax explained
Party proposes replacing council tax with new levy paid by landlords rather than tenants

Labour is considering replacing council tax with a new “progressive” property tax that would be set nationally and paid by property owners rather than tenants.
The proposals are part of a raft of policy recommendations in a Labour-commissioned report on land use. The aim is to reduce the tax paid by the majority of households and discourage the use of homes as financial assets.
The report - written by a group of academics, economists and land experts and titled Land For The Many - calls on the party to make a string of “radical but practical changes in the way land in the UK is used and governed” if it wins the next election.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“We recommend that a Labour government replace the regressive and unpopular council tax with a progressive property tax based on contemporary property values,” it says. “Unlike council tax, this tax would be payable by owners, not tenants. This would result in significant administrative savings, lower levels of arrears and less court action”, the authors say.
The market value of land in the UK is believed to have quadrupled over the past two decades, contributing to a rise in house prices. A recent study of 14 advanced economies found that an estimated 81% of house price increases between 1950 and 2012 were down to rising land prices.
As well as introducing a progressive property tax, the report calls for the valuation of properties for tax purposes to be updated annually. It also argues that empty homes and second homes should automatically be taxed at a higher rate.
In addition, Labour is considering introducing “compulsory sale orders” giving public authorities the right to seize land left vacant or derelict and to sell it at auction, says The Times.
The new report also suggests abolishing the Stamp Duty Land Tax for people buying homes they intend to live in; abolishing inheritance tax; and the introduction of a lifetime gifts tax levied on the recipient.
“Dig deep enough into many of the problems this country faces, and you will soon hit land,” writes George Monbiot, one of the report authors, in The Guardian.
“Since 1995, land values in this country have risen by 412%. Land now accounts for an astonishing 51% of the UK’s net worth. Why? In large part because successive governments have used tax exemptions and other advantages to turn the ground beneath our feet into a speculative money machine,” he says.
Labour’s shadow Cabinet Office minister Jon Trickett said his party would be “studying these recommendations in detail”.
He added: “So much of this can be traced back to the broken system of land ownership. Concentration of land in the hands of a few has led to unwanted developments, unaffordable house prices, financial crises and environmental degradation.”
But not everyone is convinced. “This is confirmation that Labour would bring the policies of Venezuela to Britain,” Tory MP Priti Patel told the Daily Mail.
Housing Secretary James Brokenshire describing them as a “tax bombshell”. He said: “These proposals are extraordinary and deeply damaging in equal measure. Labour will stop at nothing to hammer families with more tax and make home ownership a pipe dream for future generations.
“Plans to seize land into public ownership also show Labour’s true colours of more and more state control.”
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - April 2, 2025
Cartoons Wednesday's cartoons - Trump's third term, teenager's screen time, and more
By The Week US Published
-
Is Israel annexing Gaza?
Today's Big Question Israeli army prepares a major ground offensive and is said to have plans to 'fully occupy the territory'
By Harriet Marsden, The Week UK Published
-
Twitter: Breaking the Bird – a 'riveting' documentary
The Week Recommends BBC2's 'fascinating' film charts the social media platform's fall from grace
By Irenie Forshaw, The Week UK Published
-
Local elections 2025: where are they and who is on course to win?
The Explainer Reform UK predicted to make large gains, with 23 councils and six mayoralties up for grabs
By The Week UK Published
-
What is Starmer's £33m plan to smash 'vile' Channel migration gangs?
Today's Big Question PM lays out plan to tackle migration gangs like international terrorism, with cooperation across countries and enhanced police powers
By Sorcha Bradley, The Week UK Published
-
The tribes battling it out in Keir Starmer's Labour Party
The Explainer From the soft left to his unruly new MPs, Keir Starmer is already facing challenges from some sections of the Labour Party
By Sorcha Bradley, The Week UK Published
-
Are we on the brink of a recession?
Today's Big Question Britain's shrinking economy is likely to upend Rachel Reeves' Spring Statement spending plans
By Sorcha Bradley, The Week UK Published
-
Has Starmer put Britain back on the world stage?
Talking Point UK takes leading role in Europe on Ukraine and Starmer praised as credible 'bridge' with the US under Trump
By Harriet Marsden, The Week UK Published
-
House passes framework for big tax and spending cuts
Speed Read Democrats opposed the GOP's plan for $4.5 trillion in tax cuts and $2 trillion in spending cuts, citing the impacts it will have on social programs
By Peter Weber, The Week US Published
-
Left on read: Labour's WhatsApp dilemma
Talking Point Andrew Gwynne has been sacked as health minister over messages posted in a Labour WhatsApp group
By Sorcha Bradley, The Week UK Published
-
Peter Mandelson: can he make special relationship great again?
In the Spotlight New Labour architect, picked for his 'guile, expertise in world affairs and trade issues, and networking skills', on a mission to woo Donald Trump
By The Week UK Published