A new analysis shows that the highest property taxes of any developed country can be found in the United Kingdom, as it struggles to meet housing demand due to unprecedented levels of mass migration. Analysis by tax and software firm Ryan indicates that British property taxes, including council tax, business rates, and stamp duty, constitute 3.7 percent of its gross domestic product (GDP) for the 2023/24 tax year.
This surpasses Luxembourg and France, both at 3.5 percent and Canada, at 3.4 percent. Despite a 0.3 percentage point decrease from the previous year, the British property tax burden remains higher than the 2.7 percent average within the G7.
With the new tax year commencing in April, property taxes are set to rise again. Council tax bills, which fund municipal governments, will increase by five percent for a third consecutive year.
Additionally, first-time homebuyers in England and Northern Ireland will face less generous stamp duty relief next month, as exemptions will only apply to properties below $388k. Businesses in retail, leisure, and hospitality will contend with reduced business rate discounts, shifting from 75 percent to 40 percent, following last year’s budget adjustments by the leftist Labour Party government.
The high costs come as the United Kingdom struggles to build enough homes for its growing population, which has been almost entirely driven by mass migration in recent years. Labour has also scrapped plans to prioritize native Britons for public housing, which is heavily subsidized by taxpayers.
