The head of Auckland's Chamber of Commerce says the Council should not use rising property values to justify a hike in rates.

The average residential property rose 45 percent in value in the three years, the latest Auckland Council valuations reveal.

Property values are used to figure out how much each household owes in rates.

Chamber of Commerce chief executive Michael Barnett said the services the Council provides haven't changed, so people shouldn't be charged more just because their house is worth more.

He said he doesn't think rates should be tried to property values at all.

"The massive increase in valuation over the last couple of years, clearly indicates that the progressive tax system that we're using is wrong and we should be looking at another one."

He said council rates should not be tied to house values and we need a better way to charge them.

Barnett said house values shouldn't even be considered when the Council charges rates.

"I don't think they should be today. I think in a fast moving market like we've got today I think that system is flawed. We should have something that's more relevant to the services that the council's providing."