The United Kingdom has the highest property tax burden among major economies, according to analysis by property tax specialist Ryan, with taxes equivalent to 3.7% of GDP.
The data shows Britain ahead of France and Canada, both at 3.4% of GDP, and Belgium at 3.2%. The UK collected just over £100 billion last year through council tax, business rates, stamp duty and land taxes.
Impact on investment
Alex Probyn, Property Tax Principal at Ryan, told the Telegraph: “The UK sits at the very top of global rankings for property tax. That is not a marginal difference, but it reflects a system where property is taxed more heavily than in any other comparable economy.”
Probyn warned the growing tax burden was “beginning to weigh heavily on investment” and highlighted “a clear tension between the need to raise revenue and the need to support investment”.
The findings come as UK property market activity faces headwinds from elevated taxation levels.
Political implications
The analysis emerges amid speculation about Labour’s future direction. Manchester Mayor Andy Burnham, viewed as a potential leadership contender, recently stated that wealth and assets are “undertaxed”. Burnham has also backed council tax reform and called for a revaluation of council tax bands, which could push more homes into higher tax brackets.
Shadow Chancellor Sir Mel Stride claimed the figures exposed “the harsh reality of Labour’s high-tax economy”, which was “crushing investment” and “holding back growth”.
The data provides context for investors and industry professionals navigating the UK property market, where tax considerations represent a significant portion of transaction and holding costs compared to international alternatives.