Households could face new £183 a month bill after October budget

A sweeping overhaul of property taxes in this year's Autumn Budget could see households stiffed with a new £183 a month bill, according to house sale experts at Rightmove.

Rampant speculation is swirling that the government is set to significantly change the way property is taxed when bought or sold, as well as how it's taxed month to month, according to financial experts.

Tax rises are all but confirmed, with the government pointing to a £51Bn financial black hole it says it needs to plug with more tax increases. With a self-imposed ban on tax rises 'for working people', the government is instead said to be looking at inheritance and property taxes as a way to drum up more tax income. According to Rightmove, the government is looking at scrapping stamp duty, the tax currently paid by buyers when they purchase a new house, and instead replace it with a national property tax for homes worth £500,000 or more.

Under the rumoured new system, it would be sellers who foot the bill rather than buyers. In addition, there could be a new ongoing property which could tax levied month to month.

Rightmove explains: "Right now, buyers usually pay stamp duty as a one-off cost when they purchase a home, with the amount based on the property's price.

"Under the system being rumoured, sellers - rather than buyers - would pay the tax. Drawing on research from a think tank that officials are thought to be considering, the rate could be around 0.54% each year on the portion of a property's value above £500,000, though the exact rate would be set by the government.

"To put that into context, the seller of a £650,000 home might pay around £810 a year in property tax. At the moment, a buyer purchasing that same home would need to pay £22,500 upfront in stamp duty. The reports also suggest that second homes wouldn't be included in this new system and would stay under the current stamp duty rules.

"These potential changes are said to be on the table for this Labour parliament, meaning they could be introduced in the next few years. But it's worth stressing that nothing has been confirmed, and a lot of important details still aren't clear."

Rightmove adds that council tax could be scrapped and replaced with a new annual property tax for houses worth £80,000 to £500,000, according to reports.

This would mean a minimum bill of £800 a year, capped at £2,200, which would equal £183.33 per month.

It adds: "The speculation isn't just about stamp duty. There are also reports that the government could be looking at replacing council tax with a new local property tax. The idea being floated is a 0.44% annual charge on property values between £80,000 and £500,000, with homeowners paying at least £800 a year, capped at around £2,200 for properties worth £500,000."

The figures come amid warnings the Chancellor may need to raise taxes again in the budget in order to plug a black hole of up to £51 billion in the public finances.

It has been reported that the Government is looking at hitting owners of high-value houses with capital gains tax (CGT) when they sell their family home.

The Guardian also reported that the Government is considering an overhaul of the current system on stamp duty on property purchases.

Nevertheless, the Labour Government has ruled out increasing income tax, employees' national insurance contributions and VAT, restricting Ms Reeves' options when it comes to raising money.

On Thursday, economists said that the latest data was positive for the Chancellor but does not halt the need for potential tax increases or spending cuts.