Citi has said that government plans to reform stamp duty could add to the tax burden in higher-value property markets, particularly in London and the south-east.
In a note on the housing sector, the bank said: “We believe at the outset the additional tax burden may well be passed through to higher house prices if the tax incidence shifts to the seller.
"But higher property tax rates may be an additional impact in high property value locations, especially in London and [the south east]."
According to reports in The Guardian, ministers are examining a proportional property tax to replace stamp duty, with the levy falling on owner-occupiers selling homes worth more than £500,000.
At present, stamp duty is paid by the buyer on properties over £125,000.
The Treasury said no decision has yet been made, with any reforms to be set out by Chancellor Rachel Reeves at a fiscal event such as the autumn budget.
Conservative shadow chancellor Sir Mel Stride criticised the move as a “tax grab” on families.