UK Council Tax Reform: What's Being Proposed for 2026 and Beyond
England's council tax bands still reflect what a home would have sold for in 1991 — and reform proposals now on the table could change what overseas buyers and owners of higher-value homes actually pay.
This Banke guide covers what's proposed, not yet enacted.
Bands Frozen Since 1991
England has never revalued council tax bands since the original 1991 exercise. Industry estimates suggest roughly 1 in 8 English homes — around 600,000 — may currently sit in the wrong band relative to true value.
What's Being Proposed
Reform proposals under discussion include raising rates by 50% for bands F–G, doubling the rate for band H, and recycling roughly £1 billion to cut bills by 2.7% for households in bands A–D. None of this is enacted law yet — these remain proposals being debated, not confirmed changes.
A Possible Foreign Buyer Surcharge Increase
One specific proposal would raise the foreign buyer surcharge from 2% to 6%, potentially raising around £120 million and directly affecting overseas investors' upfront costs on future purchases — worth watching if you're planning a purchase and this proposal advances.
Wales Is Already Moving First
Wales is undergoing its own council tax revaluation, due to go live in April 2028. If England follows a similar path, it would mark the first English revaluation since bands were introduced — a genuinely significant shift for property values that have moved very differently since 1991.
Talk to Banke
Contact Banke for the latest on how these proposals could affect a specific purchase.