Compare My Action Co-founder Dave Sayce revealed that the new property tax proposed by Labour would “have a disproportionate impact on Londoners”.
Prime Minister Rachel Reeves reportedly considered new taxes last week When selling properties worth more than £500,000, as part of a wider stamp duty and council tax changes.
However, the second home will retain the normal stamp duty rate.
According to Rightmove, London currently sells at an average price of £66.7,000, and Sayce said the new tax could lead to an increase in the number of people leaving London.
Quarterly data comparing my actions showed that the percentage of people leaving London when they moved increased.
In the third quarter of 2024, 34% of Londoners who moved left the larger London, and so far, that number has increased to 39% in Q3 2025.
Compare My Action Co-founder and Managing Director Dave Sayce said: “Londons have found it difficult to sell homes for some time, with average selling prices falling year by year. Even so, the average price has not yet fallen below the proposed £500,000 threshold.”
“If new property taxes and stratifications are proposed based on house prices, it will put further pressure on Londoners to lower their asking price. However, I don’t think cheap property is enough to stop people from moving out their funds when they buy.”
“Londons may be discouraged to buy the property and be unable to pay taxes due to concerns that the value of the home will not be enough to pay taxes. There may be a price gap between homes selling for less than £500,000 and the homes are sold on sale.”
“At this stage, it is not clear whether the tax applies only to the portion of the £500,000 or the full value above the property’s value. Once this is confirmed, we will be able to predict its impact more accurately.”
“Unless taxes are adjusted to address regional differences, London may face significant impacts, with more residents choosing to leave. I hope that once taxes are introduced, the proportion of Londoners will increase to more than 40%, which will put even greater difficulties in selling.”
Last week’s announcement divided opinions In the mortgage market.
Propertyymark said the new tax “must be carefully considered, fit for future purposes and encourage the concept of home ownership for those who desire it.”
It emphasizes that any revised system must assist first-time buyers, second steppers, and those who wish to fit the right size.
Propertyymark policy and campaign director Timothy Douglas welcomes discussions about reforming stamp duty, as he says it is an important obstacle to moving and attracting people on the housing ladder.
“Economic growth may come from reducing the financial burden of stamp duty, which increases the number of transactions, but any change must work with the different real estate prices and dynamic nature of real estate markets across the country.”
But, Daniel Austin, CEO and co-founder of the Partner, said the new plan is a “short-term restoration” that “to no avail, which can eliminate the public fiscal gap, stabilize the real estate market or support long-term economic resilience and growth.”
