A new UK-wide study by Boon Brokers has found that the majority of homeowners reject proposed Government reforms to Capital Gains Tax (CGT) on main residences, with many describing the idea as unfair and damaging to the housing market.
The research, conducted by TLF Research and based on over 1,000 homeowner responses from across England, Scotland and Wales, revealed that 97% of respondents disagreed that applying CGT to primary homes is a fair way to balance public spending. A further 73% said the proposal was unfair and that “homeowners have already paid enough.”
Currently, main residences are exempt from CGT, which applies only to second homes, investment properties and other assets.
The proposed reform would remove or reduce this exemption for higher-value primary homes, potentially taxing part of the profit from selling a main residence.
Although thresholds and rates have not yet been confirmed, the findings show widespread concern that such a change would penalise ordinary homeowners and disrupt market stability.
The survey found that 71% of homeowners would be less likely to sell their main residence if CGT were applied, a trend Boon Brokers warns could constrain housing supply and drive up prices.
Respondents across all age groups shared this view, with reluctance to sell rising to more than 80% among those aged 55 and over.
Gerard Boon, managing director (B.A Hons, CeMAP, CeRER), said: “Introducing Capital Gains Tax 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.”
The findings also revealed that 78% of respondents believe the proposed reform would reduce Labour’s chances of re-election, suggesting the policy could carry political consequences. Of those, 45% said it would significantly reduce Labour’s chances, while 33% said it would slightly reduce them.
In terms of alternatives, 32% of homeowners said the Government should reduce public spending instead of raising new taxes. A further 22% favoured targeting high-income or wealthy individuals, while only 3% viewed applying CGT to main homes as the fairest solution.
Boon Brokers said the research highlights the scale of opposition to the proposed reform, with strong consensus across regions and demographics that taxing primary homes would be unfair and counterproductive.
