Chancellor Rachel Reeves is reportedly considering a major shake-up to the property sales tax.

Budget speculation about stamp duty was first reported in August, with suggestions that the tax could be scrapped and replaced with a new property tax for those selling a home worth more than £500,000.

Yopa chief executive Verona Frankish today said: “Stamp duty is an outdated tax that should have been abolished long ago. It creates an unnecessary financial barrier for buyers who are already spending years saving for a deposit, and at a time when affordability is so stretched, it makes little sense to penalise people further for simply wanting to own a home.”

Industry voices including Aldermore have called for a stamp duty holiday, with the lender suggesting this be applied to buyers of new homes worth under £500,000.

But Frankish poured cold water on the idea, saying: “What the market needs is full, permanent reform – not another temporary stamp duty holiday. We’ve seen repeatedly that short-term relief only triggers a surge in demand that pushes prices higher, making it even harder for future buyers to get on the ladder.

“Abolishing stamp duty altogether would remove one of the biggest upfront hurdles facing movers, support long-term market stability, and avoid artificially inflating prices in the process.”

Jeremy Leaf, estate agent and former RICS residential chairman, said: “Council tax is regressive as values have changed considerably since 1991 when the values are taken from.

“For example, in London and the south-east, no revaluation means higher bands have less of an impact. We believe mansion tax ‘dressed up’ as additional higher-value council tax bands is likely to be in the Budget despite the cost and time involved of implementing, as well as the many anomalies remaining.”