Finance expert on ‘colossal impact’ of Council Tax increases

Property experts weigh in as council taxes set to be raised…

Earlier this week, it was announced that council tax could be raised up to five times the legal limit from April, which could impact more than four million people across the UK.  

According to a report by the Daily Mail, eight different areas in the UK are set to be impacted by the proposed increase in prices: Windsor and Maidenhead, Hampshire, North Somerset, Bradford, Newham, Cheshire East, Birmingham, and Slough, Berkshire.

Homeowners in Windsor and Maidenhead could see their bills rise by a staggering 25%, while those in Hampshire could face a 15% increase.

Paul Gibbens, a Property Expert at house buyers for you, commented on the news and its potential impact on homeowners in the affected areas:  

“This proposed legislation will have a colossal impact on homeowners across the UK, especially since these proposed changes are planning on being introduced during a cost-of-living crisis. As the proposed price increases are so incredibly high, this is not a decision that will be taken lightly by the government. While these increased taxes are intended to alleviate pressure from the councils, this will ultimately place UK residents under further financial pressure.

Under typical legislation, councils can only raise council tax by up to almost 5% without seeking voter approval. However, by issuing a Section 114 notice, councils can effectively declare bankruptcy in order to raise taxes beyond the legal limit. Councils are currently experiencing an increased demand for services, largely due to the challenges posed by inflation and interest rates, which is why these proposed changes are set to be introduced.  

Paul Gibbens, Property Expert:

“It is already hard enough for younger generations to get on the property ladder as it is, so the rising cost of council tax will simply pose a further obstacle for younger people attempting to move out of family homes for the first time. Increasing council taxes beyond the legal limit will have a staggering knock-on effect for the property market across the UK, as living in the impacted areas during a cost-of-living crisis will now be unfeasible for many families.”  

If the proposed changes are implemented, homeowners in North Somerset and Bradford will also experience a 15% increase in council taxes. Residents in Newham will face a 10% increase, while those in Cheshire East and Birmingham will see a 9.99% rise. Meanwhile, those living in Slough could experience a 7.99% increase in council taxes.  

According to a recent study by house buyers for you, Bradford was named among the UK areas with the most unstable property prices. If these proposed council tax raises are implemented, then house prices will only continue to fluctuate in the city. Other UK areas named as having the most unstable property prices include Winchester, with a yearly percentage increase of 9.2% and Newry, with a property price increase of 8.90%.