Local annual property taxes in the UK, known as Council Tax, are low by international standards (we pay for it with much higher transaction costs than average).
In standard long-let rentals (assured shorthold tenancy), the tenants are responsible for paying the Council Tax. However in an HMO (house of multiple occupation), the landlord is responsible for the Council Tax.
Even where the landlord is not paying the Council Tax directly, higher Council Tax will (at the margin) reduce the amount a tenant is willing to pay, therefore property investors should favour properties in lower tax areas.
PropertyData's unique Council Tax Index, found in the Research section of the website, ranks councils in the UK annually on the tax burden they place on the average ('Band D') property in their area:
In 2021/22, we rated:
- 2 councils as Very Low Tax
- 32 councils as Low Tax
- 209 councils as Average Tax
- 94 councils as High Tax
- 61 councils as Very High Tax