But new analysis has revealed, when it comes to the cost of paying your local council’s fees, house prices and wealth do not necessarily dictate the rate.
In fact, Westminster in London – home to some of the most expensive properties in the country – sees its residents paying the lowest council tax of anywhere in the UK.
Indeed, Rentround.com has found the average property price in Westminster was over £1 million but it had an average council tax bill of just £828 a year.
Likewise, in Wandsworth, which saw average sale prices of property hit £956,541 in 2020, residents only pay £845 per year for council tax.
Why so low?
The reason for these lower rates is down to a number of factors, Rentround revealed. It explained how local authorities controlling boroughs such as Westminster already gained a large amount of revenue from other sources, such as business rates.
Indeed, the busy high streets in the area meant Westminster generated £2 billion in business rates in 2019, which was 25% of London’s £8 billion total.
Raj Dosanjh, founder of Rentround.com added: “In addition, parking is a major factor that determines council tax rates in Westminster.
“On-street parking charges in Westminster range from £1.70 to £4.90 per hour. Westminster made the most from parking tickets and fines in the entire UK, with £78 million in profits pre-Covid years.
“Finally the expenses of the council play a major role in the council tax levels. Westminster has less social care expenses than outer areas (which have more older people and families), less expense means less needs to be raised.”
Welsh boroughs amongst most expensive
At the other end of the scale, five of the most expensive regions for council tax were based in Wales. Neath Port Talbot, Merthyr Tydfil and Blaenau Gwent accompanied Harrow in London as the most expensive areas for council tax.
Top ten cheapest council tax boroughs (source: Rentround.com)
| Rank | Council | Tax £ |
| 1 | Westminster | 828 |
| 2 | Wandsworth | 845 |
| 3 | Windsor & Maidenhead | 1,149 |
| 4 | Na h-Eileanan Siar | 1,193 |
| 5 | Hammersmith & Fulham | 1,196 |
| 6 | South Lanarkshire | 1,203 |
| 7 | Shetland Islands | 1,206 |
| 8 | Angus | 1,207 |
| 9 | Orkney Islands | 1,208 |
| 10 | North Lanarkshire | 1,221 |
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Shinfield, Reading, council tax is 2436 pounds per year.
I think its disgraceful that people with the most money and more expensive propertys ,and the biggest wages pay the least council tax ,and people like my husband and I and people like us who dont even get £11000 pounds income for my husbands state pension are paying astronomical council tax bill’s I dont care what he excuse they give its disgraceful they are not the only ones who pay for parking
But why do you think it’s disgraceful? Council tax is charged to provide services from the council to its residence. If you live in a poor area where most people are in cheap homes and use a lot of services, then of course you will need to pay a lot more in council tax. It is not a national tax, and there is absolutely no reason why the people living in Kensington and Chelsea should be subsidizing YOUR council tax.
The current funding formula was devised by Gordon Brown and was formulated in favour of inner cities which were generally derelict and inhabited by it’s supporters. However, London is different where the most richest live in the inner city as well as many high earning singletons who don’t make any calls on services such as care for the elderley, schools etc. In addition to this, the local councils make a packet on things like the parking. Rural areas got less cos they were predominantly Tory voters.
Kingston council has spent so much money blocking off roads in an effort to divert car pollution to other roads. Putting in unwanted cycle lanes whose usage doesn’t justify the money spent on them. Painting rainbow zebra crossings… the money could be better spent repairing pot holes and road maintenance, on providing better access to rubbish tips/ more bins on streets- not less( they took some away), cutting grass verges – the list is endless.
I can add that Stratford upon Avon costs me 171 pounds pm which works out to 2052 pounds pa. If I want them to collect a green bin, add another 40 pa.
They only collect bins once every two weeks as well, so in theory there is a 50% drop in running costs for that side of council management.
Insane
I live in saddleworth which is part of Oldham and we pay £330 per month making it £3300 per annum. Surely this is one of the most expensive in the country??
Are you sure that’s correct? in the UK we only pay for 10 months of the year so if you’re paying £171 that equates to £1710 per year. Unless you’re on some unusual deal with the council.
The data in this table are not correct because the council tax charges shown are not apples and apples. In many areas you need to add in a district charge (on top of the county), a police authority charge and a fire authority charge. Its sloppy research which gives a misleading impression. (The London council charges are correct because they are ‘all in’ once the GLA precept is added, which has been done). Council tax in Oldham is £2,032, for example.
Why are houses which undergo extensive enlargement not re-assessed for council tax upon completion as this would render the property more valuable? If owners can afford a large extension, then they should be able to pay more council tax, if indeed this was the basis on which council tax was originally assessed! I own a home surrounded by extended properties, paying a high rate of CT even as a single retired person with the 25% discount. I can’t afford to move and manage to keep solvent, but not if this tax keeps rising. I am only on a State pension
I am a recently retired 70year old, living off my reduced pension in a Derby Retirement Complex of 37 studio flats. Within a month of coming to Derby the council had sent me a tax bill for £1700 for 12months payable in 3month instalments. For what? Derby Council I’m sure can find a thousand things including their own salaries that you have to pay for. But it is sad to target pensioners!