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OECD Urges UK to Revalue Outdated Council Tax Bands as Overpayments Persist

Homeowners face rising bills under a system built on 34-year-old valuations, with expert warnings about a six-month window to dispute incorrect bands.

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Overview

  • The OECD has called on the UK government to revalue council tax bands based on up-to-date property prices as part of a broader revenue-raising strategy.
  • Council tax bands still reflect April 1991 valuations that were rushed and relied on quick estate-agent assessments, leaving hundreds of thousands of homes potentially misclassified.
  • Local authorities increased the typical Band D bill by 5% in April to £2,280—with some councils granted hikes up to 10%—exacerbating household cost pressures.
  • Martin Lewis advises recent movers to compare their band with neighbouring properties and use online valuation tools before the six-month challenge deadline to secure possible refunds.
  • Pressure is mounting on Sir Keir Starmer’s government to overhaul the council tax system to stop unfair overpayments and unlock billions in uncollected revenue.