authorities responsible for collecting Council Tax have played down fears that rocketing house prices could result in huge rate rises.

The Government will begin revaluing properties in 2005, the result determining which Council Tax band a household falls into.

The higher the value of the house, the higher the band and the higher the tax.

David Wood, Malvern Hills District Council's head of financial and business planning, said it was difficult to predict what impact the review would have at this early stage, although he did not predict huge rises.

"The issue is has the market changed since back in 1990 and if it has changed we are not talking about huge increases in Council Tax level for the majority of people," he said.

"For those adversely affected there will be transitional help."

Herefordshire Council's county treasurer Ian Hyson said the review would not leave vulnerable people out of pocket and presents an opportunity to iron out inconsistencies in the system.

He added: "While there will inevitably be some people who will have to pay different amounts, the vast majority will pay what they are paying now and there is no need to worry."

Ledbury estate agent Howard Pugh, kept busy with appeals made by many rural property owners following the previous round of Council Tax valuations, is predicting rises in bills.

"They certainly did last time. I would think it's got to be the thin edge of the wedge," he said.

The Government's Valuation Office Agency will oversee the work, starting in 2005, and is awaiting instructions from the Department of Transport, Local Government and the Regions.

DTLR spokesman Ian Sear said: "They will reassess everyone's property, which is a mammoth task, but they do it every five years for the business rates so they are used to it."

He said steep rises in house values did not necessarily equate to big rises in Council Tax.

"Council Tax revaluation is not about trying to get more money from Council Tax - we are just looking to get the same pot of money."

The Institute of Chartered Surveyors says the average figure for house prices has risen by 50 per cent since the last evaluation in the summer of 1991.