Critics Blast Reeves' New Homes Tax on London Families

A property expert critical of stamp duty has expressed concerns that a new property tax proposed by Rachel Reeves could impact Londoners' ability to start families.

The proposed tax would apply to properties valued over £500,000 when sold, replacing the current stamp duty system. Simon Gerrard, an estate agent advocating for stamp duty reform, labeled the potential tax as a "London tax" that would burden ordinary Londoners.

Gerrard warned that setting the threshold at £500,000 could distort the property market and make it harder for people to afford homes in London. The Tony Blair Institute and TV presenter Kirstie Allsopp also raised concerns about the proposed changes.

Former Treasury minister Jim O’Neill supported the overhaul of property taxes, emphasizing the importance of genuine tax reform for economic growth and productivity.

The proposed levy would be paid by homeowners when selling properties over £500,000, with the exact amount based on the property's value. The plans aim to target financial gains from rising house prices and could be implemented in the near future.

The review reflects a push for more wealth-based taxes, with pressure on the chancellor to introduce measures that target property wealth without increasing taxes on working people. The Treasury emphasized its focus on growing the economy to strengthen public finances while keeping taxes for working people as low as possible.