House prices have tax implications

This increase has been driven by the failure of successive governments to raise tax thresholds in line with house price inflation.

Halifax also calculates that the stamp duty threshold would be raised to £118,500 if it was increased in line with the rise in house prices since March 1993 – the last time that the threshold was increased. The inheritance tax threshold would be raised to £296,300 – some £46,300 higher than its current level (£250,000).

Commenting on the research, Martin Ellis, chief economist at the Halifax, said: "It is clear from this that more and more homeowners are potentially facing a rise in their tax liabilities as the government has declined to index property related thresholds in line with house prices."

Phil Jenks, head of mortgages, agrees: "Housing activity is an important part of the UK economy, and it is right that a government should take its fair share of tax revenue from it. Housing, however, is most people's biggest asset and it is surely right too that tax thresholds are automatically linked to house price inflation to prevent more and more households paying inheritance tax and stamp duty."