Research from London lettings and estate agent, Benham and Reeves, has revealed that it’s not just London house prices that have climbed considerably in recent times, with the total paid in council tax by London homeowners and tenants hitting almost £5bn a year – £1.2bn more per year compared to just five years.
Last week it was reported that inflation has surged to a 30 year high and with gas and electricity costs set to climb higher yet, the cost of living has become increasingly difficult for many.
The research by Benham and Reeves shows that the average Londoner pays £1,374 in council tax per year, up 26.8% in the last five years,
Richmond is home to the highest council tax cost per property at £2,065 per year while Southwark has seen the largest increase over the last five years at 36.8%.
Total council tax costs
In total, London’s current council tax bill is a huge £4,993,798,878 per year based on the average cost per household and the total number of dwellings across the capital.
Barnet is home to the highest sum of council tax paid on an annual basis, with £258.5m paid across the 146,730 homes in the borough. Croydon is also home to one of the highest total council tax bills at £252m per year, followed by Bromley (£225m), Ealing (£195m) and Lambeth (£1782m).
But it’s not just the increasing cost of council tax per household that is pushing up this total, in the last five years an additional 150,000 homes have been built within London which has contributed to a £1.2bn increase in the total sum of council tax paid across London.
Tower Hamlets has seen the largest annual increase in council tax costs over the last five years, with the total sum paid per year increasing by 48.6%. Southwark (45%), Barking and Dagenham (41.4%), Lewisham (41%) and Croydon (38.9%) are also amongst the boroughs to have seen the largest uplofts in the total sum of council tax paid.
Director of Benham and Reeves, Marc von Grundherr, commented:
“Council tax is one of the core costs that many homebuyers fail to consider when looking to buy a home and the sum owed each year can differ drastically depending on where you choose to live.
Much like our home insurance or energy bills, it’s also subject to change and the average London homeowner has seen council tax bill increases squeeze their cost of living by a further £300 a year in the last five years alone.
So it’s an important one to consider when it comes to the ongoing affordability of your home, as unlike an expensive phone contract or comprehensive TV package, it can’t be dodged.”
Table shows the average cost of council tax per year in each borough and the total annual bill paid based on the number of homes in each borough, as well as how this has changed over the last five years – Sorted by largest % increase in total cost
Location
Average Annual Council Tax Cost
Council Tax Cost – Five Year Change
Dwelling Stock
Dwelling Stock – 5 Year Change
Current Total Annual Council Tax Cost
Total Council Tax Cost – 5 Year Change (£)
Total Council Tax Cost – 5 Year Change (%)
Tower Hamlets
£1,156
33.4%
126,103
12,918
£145,761,337
£47,655,862
48.6%
Southwark
£1,167
36.8%
137,472
7,732
£160,406,728
£49,759,266
45.0%
Barking and Dagenham
£1,164
36.5%
76,570
2,656
£89,159,514
£26,084,263
41.4%
Lewisham
£1,217
35.5%
129,366
5,009
£157,486,132
£45,791,162
41.0%
Croydon
£1,547
31.9%
162,717
8,158
£251,775,289
£70,488,401
38.9%
Lambeth
£1,246
33.4%
143,024
5,414
£178,196,933
£49,676,073
38.7%
Greenwich
£1,149
28.2%
117,450
8,847
£134,958,776
£37,608,133
38.6%
Brent
£1,402
30.2%
122,881
6,232
£172,229,262
£46,683,443
37.2%
Newham
£988
25.5%
120,347
10,096
£118,852,484
£32,111,407
37.0%
Redbridge
£1,539
32.0%
105,312
2,605
£162,120,627
£42,298,532
35.3%
City of London
£1,171
19.9%
7,099
793
£8,314,660
£2,156,536
35.0%
Wandsworth
£789
26.8%
149,390
7,811
£117,910,073
£29,816,788
33.8%
Barnet
£1,669
25.9%
154,936
8,206
£258,533,359
£64,090,167
33.0%
Waltham Forest
£1,359
28.7%
104,557
3,273
£142,082,152
£35,100,927
32.8%
Hounslow
£1,405
27.1%
103,544
4,277
£145,439,498
£35,760,382
32.6%
Ealing
£1,421
26.8%
137,113
5,864
£194,834,622
£47,770,118
32.5%
Hackney
£1,020
26.7%
112,205
4,631
£114,406,490
£27,869,982
32.2%
Westminster
£892
27.6%
126,422
4,398
£112,783,057
£27,443,132
32.2%
Harrow
£1,850
26.6%
93,109
3,785
£172,272,951
£41,767,014
32.0%
Bromley
£1,606
28.3%
140,169
2,605
£225,163,918
£52,902,151
30.7%
Hammersmith and Fulham
£1,098
23.0%
90,335
4,700
£99,153,234
£22,762,532
29.8%
Bexley
£1,546
27.5%
98,599
1,735
£152,426,117
£34,992,078
29.8%
Kensington and Chelsea
£1,502
27.3%
88,237
1,316
£132,552,923
£30,016,565
29.3%
Haringey
£1,269
25.1%
110,253
3,374
£139,963,189
£31,536,581
29.1%
Islington
£1,215
24.4%
105,489
3,706
£128,206,273
£28,782,936
28.9%
Merton
£1,499
25.2%
84,916
1,701
£127,324,688
£27,630,621
27.7%
Sutton
£1,605
23.4%
84,126
2,498
£135,060,214
£28,833,616
27.1%
Richmond upon Thames
£2,064
23.7%
85,877
1,583
£177,277,372
£36,655,593
26.1%
Camden
£1,419
21.3%
106,583
3,965
£151,275,126
£31,158,704
25.9%
Kingston upon Thames
£1,945
22.9%
68,255
1,604
£132,768,592
£27,317,379
25.9%
Havering
£1,597
23.8%
102,967
1,694
£164,438,611
£33,823,785
25.9%
Enfield
£1,342
21.9%
126,675
2,204
£170,020,325
£32,976,509
24.1%
Hillingdon
£1,467
17.5%
112,400
4,229
£164,932,276
£29,876,456
22.1%
London
£1,374
26.8%
3,634,497
149,619
£4,993,798,878
£1,216,191,126
32.2%
Data on council tax costs per dwelling sourced from Gov.uk: Live tables on council tax
Data on total dwellings in each borough sourced from Gov.uk: Live tables on dwellings
Total council tax bill and change based on the average cost of council tax per dwelling multiplied by the total number of dwellings vs five years previous.
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About the Author
Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 14 international offices.