Areas and properties among the most expensive in 1991, but whose relative appeal against rival postcodes and homes has fallen since, could benefit from having their band reviewed. Similarly, properties converted into smaller homes, or new-builds where the valuation is circumspect could be successfully argued into a lower band.

However, taxpayers in areas where prices have surged the most since 1991 likely pay lower council tax bills despite their properties’ high values, and will receive the full £150 payout.

Taxpayers can challenge outdated tax bands by calling the VOA. More than 40,000 people challenged their council tax bands last year, with close to a third of the challenges resulting in bills being cut. Some 40 homeowners were placed into a more expensive tax band while the majority resulted in no change.

A local authority will typically review bands if a property or the area surrounding the property has dramatically changed, such as: if it has been demolished; converted into flats; converted into a business premises; or if changes in the local area such as a new supermarket have affected its value.

Paula Higgins of the Homeowners’ Alliance, a campaign group, said the council tax system was “ridiculous” and “ripe for reform”.

“In most other comparable countries properties are valued annually. Fixing the kinks in the system which result in lower income homes paying more than the wealthiest are now more important than ever,” she added.

The most expensive council tax in England is in Nottingham, with band D properties charged £2,226 year. Homes in the most expensive band of properties (H) in the city pay £4,452 a year. The lowest is in Westminster, where the cheapest band of properties (A) pays £553 a year, despite being home to some of the most expensive real estate in the country.