U.S. Cities Where Homebuyers Are Paying more in 2026

1. Hammersmith and Fulham

• Average property price: £729.4K
• Current Band D council tax: £1,519.51
• Proposed annual PPT: £2,719.51
• Annual increase: £1.2K
• Percentage change: +79%

Hammersmith and Fulham borough is facing the largest annual tax rise under the proposed system. Homes here average £729K, but residents currently pay just £1,520 a year in council tax. Under the new rules, that bill would climb to around £3.5K. The £1.2K annual cap does stop it from going up this much, but even with that limit in place, households will still be paying 79% more than they do today.

2. Westminster

Westminster ranks second and, like Fulham, faces the maximum £1.2K tax increase. Current Band D council tax here is just £1,050 a year, one of the lowest charges in England despite the borough being home to some of its most expensive streets. Westminster’s average property price of £836K would put its uncapped PPT bill at nearly £4K, meaning the cap helps a lot. Still, the council tax bill more than doubles here, rising 114%.

3. Camden

Camden takes third place, also facing the maximum £1.2K annual tax increase. Average properties here cost just over £806K, which under the new system would push an uncapped tax bill to £3.8K+, well above Camden’s current Band D charge of £2.2K. So while Camden residents will benefit from the cap, they are still looking at a 54% increase, potentially paying £3.4K per year.

4. City of London

The City of London, home to the country’s financial district, comes fourth. The City residents currently pay just £1,330 in annual council tax, one of the lowest Band D rates in the country, yet they live in an area where the average property costs £627K. Under the proportional system, the uncapped bill would reach around £3K, so the cap cuts the increase by £2K. Even so, bills are expected to rise by 90%, exceeding £2.5K a year.

5. Kensington and Chelsea

Kensington and Chelsea rounds out the top five, with typical properties in the area going for £1.25 million. An uncapped 0.48% tax on that would lead to an annual bill of more than £6K, nearly four times what residents currently pay in council tax. The £1.2K cap brings the actual increase down to a manageable level, taking annual bills from £1.6K+ to £2.8K. That’s a 72% rise, though in a borough where many apartments sell for several million pounds.

A property tax expert from Everest Mortgages commented on the study:

“The council tax system has been out of step with the market for 35 years. Properties in London have gone up enormously in value since then, without the tax rate moving. At the same time, most of the debate around property tax reform focuses on who would pay more, but it turns out the majority of homeowners in England would actually pay less. Areas like Burnley and Hartlepool, where property values are low but council tax bills are still high, would see huge savings. The burden would shift toward high-value areas, particularly in London, which is exactly what a proportional system is meant to do.”