Centre for London proposed replacing stamp duty on homes and council tax with a property-value-based annual tax in a report published on 20 May 2026.
What the proposal seeks to change
The thinktank argues that transaction taxes can discourage moving and that council tax does not adequately reflect differences in property values. Its model would place the replacement charge on owners and include national, regional and local elements.
The organisation says the approach could help fund additional social and affordable housing. Its estimates are modelled outcomes, however, rather than money already collected or homes already delivered.
Reading the modelling carefully
The methodology draws on Land Registry transactions, dwelling-stock information and house-price data. The proposal also includes transitional protections and consideration of households with valuable homes but limited cash income.
An individual household’s result would depend on the final design, valuation basis and any exemptions or deferral arrangements. A headline average is not a quotation for a particular owner or tenant.
The report is a contribution to the policy debate. It does not by itself abolish an existing tax or change a payment obligation. Readers making a purchase or budgeting for housing costs should use the rules actually applicable to their circumstances rather than assume the proposal has been adopted.