Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Property Tax Petition Triggers Commons Debate After 100,000 Signatures

A petition calling for changes to the way residential property is taxed has passed the 100,000-signature mark, making it eligible for consideration for a debate in Parliament. The petition, which closed yesterday, was launched by Fairer Share, a campaign group advocating for the replacement of council tax and stamp duty with a Proportional Property Tax.

Fairer Share’s proposal suggests that homeowners would pay an annual charge equivalent to 0.48% of their property’s value. For a home valued at £300,000, this would amount to £1,440 per year. The campaign group has called on the government to commission a full, independent review of council tax and stamp duty, citing concerns about rising council tax arrears and the use of outdated property values for tax calculations.

The government previously responded to the petition in March after it reached 10,000 signatures. In its response, the government stated that council tax and stamp duty are important sources of revenue, raising £60 billion a year to fund essential services. The government also highlighted that council tax accounts for 53% of local government core spending power for 2026-27.

Council tax in England is based on property bands determined by the Valuation Office Agency, using property values from April 1991. Local authorities are responsible for setting council tax levels in their areas, taking into account service needs and other income sources. The government noted that council tax is a settled tax with a high collection rate and includes a range of reliefs and exemptions, such as discounts for single occupants and students, as well as support schemes for low-income households.

Letting agents and inventory clerks may wish to monitor the outcome of the forthcoming Commons debate, as any changes to the property tax system could impact property management, tenant affordability, and local authority funding.