The Resolution Foundation has called for reform to England's housing tax system, arguing that Londoners are underpaying council tax by £3.1 billion relative to their property values, whilst residents elsewhere in England subsidise them. This creates significant inequality, with lower-valued properties bearing disproportionate tax burdens compared to high-value homes. The think tank has urged Chancellor John Healey to address this imbalance in the upcoming Budget, attributing the problem to poor tax design and four decades of unaccounted house price growth.

The disparity is stark: someone living in a £100,000 home would pay nearly three times more tax relative to their property's value than someone in a £1 million home by 2031. Analysis shows that 80 per cent of London households currently benefit from the system, whilst 85 per cent of North-East households face overpayment relative to their property values. The Conservatives have criticised the proposals as a "tax raid" on London, whilst speculation mounts that the Government may lower the mansion tax threshold to £1.5 million, a move that would predominantly affect properties in London and the South-East.