It's a transaction tax. Setting aside that there's typically a 2% cost on buying and selling a house in the UK anyway due to estate agents and legal costs, and the average house attracts another 1.5% in stamp duty it's not a major obstacle for the majority of transactions, but it's still friction.
It would be far better to replace with a %age tax whether you move or not, but wealthy people in the south east don't like the idea of taxes on unearned wealth.
It would be far better to replace with a %age tax whether you move or not, but wealthy people in the south east don't like the idea of taxes on unearned wealth.