I can see the argument that council tax is itself unfair, but I don't really get how this is any fairer...
At the very least it is far more progressive. The numbers being bandied around not by Labour but by the Conservatives are quite heavy handed and so sound like a massive jump, but if you look at who pays most it is going to be those at the upper end of the wealth spectrum. The numbers in the article are based on a concept of a 1.65% tax on the value of the property plus a 3% tax on the value of the unimproved land. Those sound very high, but then, they aren't from Labour. I'd imagine the tax take on that basis would be enormous compared to the current council tax take.
Reduce those percentage figures down a bit and it becomes a very sensible, progressive, effective system in my eyes.