Lucian Cook, the head of residential research at estate agent Savills, said: “There’s a big difference between someone in a £2m house without a mortgage and someone with a sizeable mortgage. So it doesn’t necessarily capture net wealth at all.”
Neal Hudson, the founder of housing market data firm Residential Analysts, added: “There’s a danger this will have some fairly negative impacts. The top end of the market has been stagnating for the last decade already as it’s been hit by higher rates of stamp duty.”
It comes as Labour opened the door to the introduction of a “house price tax” that would hit the middle classes.
Ministers have said they are “considering options for reform” in the clearest indication yet that new property levies will feature in the Budget next month.
The remarks will further stoke fears that the Chancellor is planning a raid on assets including homes to fill a £30bn black hole in the public finances.
It follows reports that the Chancellor is looking into whether to scrap council tax and replace it with a new annual charge based on house prices.
