The City of London has seen the average price of its property drop 36 per cent since 2018.

Rachel Reeves is strongly considering a change to council tax payments as a way for owners of more expensive houses to pay more, according to people familiar with the matter.

The move would be instead of a direct selling tax on expensive houses, which experts have warned would simply gum up the market as fewer people moved.

Although no decisions have been taken, Reeves has said that higher taxes on the wealthy will be “part of the story” in her Budget on November 26, as she looks to fill an estimated £20bn gap in the Treasury’s finances.

People close to her preparations say that “administrative simplicity” is key, according to the Financial Times.

A change to council tax payments would raise in

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