Chancellor Reeves Plans New Property Tax for Homes Over £500K

Labour Chancellor Rachel Reeves is facing intense criticism over proposals to overhaul property taxes, including replacing stamp duty with a proportional property tax on homes worth over £500,000, and potentially introducing a local property tax to replace council tax. Property experts like Kirstie Allsopp warn such reforms would destabilize the housing market and unfairly penalize homeowners who have made sacrifices to buy their homes. Critics argue these changes would act as a disguised wealth tax and could further damage an already fragile market, with concerns that homeowners might face taxation both when buying and selling properties. Labour insists these measures aim to fill a £50 billion gap in public finances and boost economic growth, but opposition voices, including the Conservative Party and property groups, caution against creating uncertainty that could lead to market paralysis and higher property prices. The Treasury acknowledges the need for economic growth and fiscal strength but stresses careful consideration to avoid harming homeowners. Overall, the debate reflects deep divisions over how to manage property taxation without undermining market stability or burdening working families.