Households facing £114 council tax increase
The latest research from eXp UK shows that the average household could see their council tax increase by £114 over the next year following increases of up to £986 over the past ten years.
At the beginning of April, the majority of local councils are expected to put council tax up by 4.99% – the maximum increase allowed without a referendum or government approval – due to the “severe financial pressure” that many local authorities find themselves under.
eXp UK has analysed UK government council tax statistics* and found that this will mean the average household in England is looking at an estimated 2026-27 tax bill of £2,394, an annual increase of £114 compared to 2025/26.
Further research from eXp UK reveals that this imminent increase comes on top of steep increases that have seen the average council tax bill in England soar by £751 over the last decade and by as much as £986 in some areas.
That increase of almost £1,000 has been endured by households in Croydon, where between the tax years 2016/17 and 2025/26, the average annual council tax bill has grown from £1,494 to £2,480, an increase of 66%.
Rutland has seen the second-largest ten-year increase of £898, leaving local households with the nation’s largest 2025/26 bill of £2,671.
In Somerset, the average bill has increased by £892 since 2016, followed by the City of Nottingham (£885), Gateshead (£879), Isle of Wight (£877), Liverpool (£871), Birmingham (£865), Lewes (£863), and Bristol (£863).
What is council tax used for?
Council tax is essential for funding a variety of important local public services. Such services include refuse collection, street lighting, libraries, youth clubs, parks, and care services. Some additional charges can be placed on top to fund the likes of adult care services, police forces, and fire services.
Cities with mayors, such as Manchester and London, are also entitled to add further charges on top to fund things like public transport infrastructure.
Head of eXp UK and Europe, Adam Day, commented:
“Council tax is an unavoidable expense for homeowners as well as the majority of private renters. It can be incredibly frustrating when the bill goes up year after year, but when local authorities are struggling with their finances, as they so often are, the additional income is absolutely vital if they’re to maintain public services for the local community.
The cost of council tax differs from one area to another, and from one property to another and, for example, homes with a higher historical value will be placed into a higher council tax band and thus face a bigger bill.
So when you’re buying a property, it’s always good to keep an eye on the local council tax rate, especially for households with tight monthly finances, as the average bill can differ by more than £1,000 per year depending on where you live. London, for example, is home to both the highest rate – Croydon at £2,671 – as well as the lowest – Wandsworth at £998.”
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