Abolishing Stamp Duty could increase housing transactions by more than 25%, generating over 300,000 additional home moves each year, according to analysis from wealth and asset management firm Rathbones.

The firm argues that high transaction costs are discouraging homeowners from moving, potentially restricting labour mobility and leaving properties occupied by households whose needs have changed.

The analysis comes amid speculation ahead of the Autumn Budget over potential changes to property taxation, including Stamp Duty and Council Tax.

Jay Lawrence, Investment Director at Rathbones, said: “Property taxes influence how people behave. We increasingly hear from clients who are staying in homes that no longer meet their needs because moving simply doesn't stack up financially.

“When people are discouraged from moving, the impact extends far beyond the housing market. Labour mobility falls, homes are used less efficiently and opportunities for economic growth can be constrained.”

Rathbones estimates that around 40% of UK household wealth is held in residential property, equivalent to more than £5.5 trillion. It argues that a more mobile housing market could create opportunities for some of this capital to flow into investment, businesses, spending and intergenerational wealth transfers.

The firm also highlighted Cambridge as an example of the relationship between housing affordability and economic growth. The average home in the city now costs almost £470,000, equivalent to around 12 times average earnings.

Mark Winchester, Head of Rathbones Cambridge, said: “For many highly skilled workers, the biggest challenge is no longer finding a job in Cambridge but finding somewhere affordable to live.

“Housing affordability is no longer just a social issue. It is increasingly an economic one, affecting productivity, competitiveness and long-term growth.”