IMLA cautioned against using the housing market as a “convenient target” in the Budget, saying that increasing property taxes would fail to raise meaningful revenue and could instead choke economic growth.

In recent weeks, reports have suggested that Chancellor Rachel Reeves is considering a series of tax reforms, including the introduction of a new annual property tax, the extension of capital gains tax to main residences, and a potential overhaul of the council tax system.

IMLA’s latest analysis has revealed that all of the property tax ideas floated so far would together raise less than £6bn.

“These numbers simply don’t move the dial,” said Kate Davies, executive director of IMLA.

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“The chancellor should resist the temptation to reach for politically easy but economically damaging options. Most of the property-related measures being discussed would deliver minimal revenue, take years to implement and undermine confidence in the housing market.

“If ministers want growth, they should look at broader, bolder measures that can genuinely raise revenue and support investment. Small piecemeal tax changes will just add uncertainty, hurt confidence and slow activity at exactly the wrong time.”

“The inevitable result of squeezing landlords and homeowners further will be fewer rental homes, higher rents and more misery for renters.”

Claiming that “dithering and indecision” damages business confidence, IMLA has urged the government to develop a coherent housing strategy to support new building and long-term investment.