Council tax reflects property values in the 1990s. The promised five yearly value reviews never happened because of political cowardice.
Property tax is reviewed annually in the USA, “…The amount of tax is determined annually based on market value of each property on a particular date.”1 New Jersey has the highest rate at 1.89% and the lowest is Louisiana’s 0.18%.2 21 states are above 1% and then the range is between Louisiana and Florida’s 0.97%.
So what?
The benchmark used for this blog is Maryland, whose tax rate is 0.87%. They are at the USA’s mid-point property tax rate. Havering’s average house price is £451,000.3 Using Maryland’s 0.87%, the council tax would be £3,923.70 for an average house, instead of Band D’s £2,313.4,5
Detached houses in Emerson Park average £1,125,079. Their effective council tax is 0.41% or less.5 In Havering, high value houses are under-taxed under the American property tax system.
Council tax is a failed property tax, which is political dynamite. Havering’s Band H houses would have a council tax increase from £5,161 to £9,788 if Maryland’s rate was used.6 Havering’s financial woes are 30+ years old. The financial crisis was created by Conservatives and maintained by cowardly successive governments.
Council tax is a sick joke benefitting the rich.
Addendum: Louisiana’s 0.18% property tax
Louisiana is *Third World* in many ways. Life expectancy is 72 years7 and literacy is 72.9%.8 If Louisiana was a country it would be failed state. It is an example of low tax levels destroying society. (A £3m house in Havering has Louisiana levels of property tax rate as a percentage.)
Notes
1 Property tax in the United States – Wikipedia
2 Property Tax Rates By State 2025 – Tax-Rates.org
3 Housing prices in Havering See also Havering Housing Market | Price trends and market breakdown
4 Council Tax bands and bills | London Borough of Havering
5 House Prices in Emerson Park Two houses are for sale at £3m+ and several at £2m+, which reduces the percentage that council tax represents.
6 A £3m house would pay £26,100 council tax in Maryland instead of £4,627 in Havering.
7 Louisianans’ life expectancy is lower than national average – Axios New Orleans In Britain it’s 87 years Life expectancy calculator – Office for National Statistics
8 Louisiana Literacy Rates – Studyville Literacy in Britain is 99% Literacy Rate in UK Statistics 2025 | Illiteracy Rate UK – The Global Statistics
Politics in Havering 
Owners wouldn’t or couldn’t afford the suggested rate, so, the council could put a charge (?) on the property to be paid when sold or passed on.
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Thank you for your comment.
Obviously the transition period would be painful as people got used to the idea that *something for nothing* is a fantasy. It wont happen but it illustrates why governments have dodged council tax reform for 30+ years
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Whilst the disparity is glaring, you’re looking at the problem from the wrong end of the telescope.
Property tax is a straightforward way to raise tax, but it shouldn’t be expected to fund the shortfall in government funding due to wasteful government spending and statutory duties resulting in local government underfunding and crippling debts, and means increasing property tax on high value houses still wouldn’t solve the funding crisis.
Put another way, we’re a very rich country but mismanaged by warmongers, ideologues and criminals in government who are wasting £BILLIONS on e.g. war with Russia, Net Zero and open door immigration.
For example, the car solar port / rain shelter at central park leisure centre cost about £700,000 (grant) + £80,000 (council tax) to build to meet irrational “Net-Zero climate goals” (and I’m not sure it’s even connected) whilst libraries are closed to save much less! And the libraries are closed to prove to government we really do deserve another bailout.
Instead, councillors should take legal action to get fair funding or resign rather than break their election promises, but refuse to do so, preferring to hide behind the officers. Cllr Morgon says he’s seen legal opinion showing legal action isn’t possible, but refuses to disclose the legal opinion or admit costs can be shared with other councils! Why not?
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Thank you for your comment
Linking government and local government finance is useful. However, the point, of my very short blog, was to highlight the different outcomes for rich and poor people. By translating it into percentages and then extrapolating those percentages to *all* houses showed that poor people people are paying a multiple of what rich people are paying. There’s no possibility that a value based property tax will be used in Britain as the losers are influential and swerve the tax to suit their interests.
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