Households in Greater London will pay £444 less annual council tax than their counterparts in the North East, a study has found.

The average band D council tax bill in England and Wales will rise by 5.1% in April, the research shows, which is a slightly lower increase than last year but still outpacing inflation.

The North East remains the highest paying region, with the average band D property owner receiving an annual council tax charge of £2,425.

This contrasts with bills in Greater London, which has the lowest average bills of £1,981, meaning households will pay £444, or nearly a fifth (18%), less than those in the North East.

London council tax payers will also have the lowest monetary increase in bills of £88.90, according to an annual survey by the Chartered Institute of Public Finance and Accountancy (Cipfa).

The Government justified allowing six councils – Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset and Trafford – to increase council tax above the referendum threshold this year by stating these councils have low levels of council tax.

With growing demand for support and overall reductions in funding, Cipfa said council tax rises will not be sufficient to maintain services.

Joanna Pitt, Cipfa senior policy manager, said: “Local authorities are caught in an impossible position, balancing rising demand for essential services against financial pressures.

“While increasing council tax is never an easy decision, it is often the only option available to maintain service provision in the face of difficult funding decisions.”

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Analysis by the PA news agency found a majority of households in England are facing a third year of maximum council tax hikes after all councils confirmed their plans.

Nearly nine in 10 (88%) of 153 upper-tier authorities in England will impose a 4.99% increase this year, the most allowed without triggering a local referendum.

If councils increasing bills by 4.5% or more in April are included in the tally, the proportion increases to more than nine in 10 (94%).

For just over two-thirds (68%) of top-tier authorities, it will be the third year in a row that bills have gone up by at least the maximum legal amount, according to analysis by PA.

By contrast, just nine councils are boosting bills by less than 4.5% this year.

Data for individual regions showed three of the 33 London councils have opted to increase council tax by less than 4.99%, Wandsworth, Kensington & Chelsea and Barnet (4.80%), while Newham has received permission for an 8.99% increase.

Meanwhile, three of the 12 councils in the North East have set council tax below the maximum: South Tyneside and Stockton-on-Tees (both 4.95%) and Sunderland.