A survey from Boon Brokers of around 1,000 homeowners found that only 23% agreed with applying CGT to main homes.
Media reports have suggested that Chancellor Rachel Reeves is looking at ways of raising tax on high-value homes through reforms to CGT in the upcoming Budget, or mansion tax. This would be done by ending the CGT exemption homeowners have when selling their primary residence.
Currently, CGT is only payable on the sale of second homes, investment properties, shares and other assets.
The report noted that 97% of respondents disagreed that applying CGT to primary homes was the fairest way to balance public spending.
Around 71% of those surveyed said the reforms would make them less likely to sell their main residence, which could constrain the housing market in the future and exacerbate existing affordability challenges.
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There is some variation by age, with 76% of those aged 18-24 saying they would be less likely to sell their main residence if CGT changes were applied.
This rises to 80% of respondents aged 55 and over, while it is 68% for those aged 45-54 and 63% for those aged 25-44.
Approximately 78% of respondents said they believed the imposition of such changes would reduce Labour’s chance of re-election.
The report found that nearly a third of respondents thought the government should cut public spending rather than raise new taxes.
Around 22% said wealthy or high-income households should be targeted instead of main homes, with 19% preferring a wealth tax on high-net-worth individuals.
Nearly 16% opted for maintaining current expectations and focusing on economic growth to raise revenue.
Boon Brokers said the figures show that there is a “widespread view that additional taxing, especially in the form of a main residence, would impose an additional financial burden on individuals who have and are already contributing to the housing market”.
It noted that there is a “growing concern” among homeowners that “proposed reforms could end up penalising those who have made long-term financial decisions that were predicated upon the existing system”.
Gerard Boon, managing director of Boon Brokers, said: “Introducing CGT on main residences could have serious consequences for the housing market. When fewer homeowners are willing to sell, supply will naturally constrict, driving up competition and prices.
“This imbalance between supply and demand doesn’t just impact affordability, it would risk stagnating the market and placing greater pressure across all levels of the housing market.”
