Public sector middle earners such as teachers could also be forced to relocate from London and the South East as property becomes even less affordable, while asset-rich, cash-poor individuals who have lived in their home for decades “have no prospect of affording the land value tax”, Mr Neidle added.
Sir Mel Stride, the shadow chancellor, said the reform “risks being an unfair tax on aspiration”.
He said: “Nothing is safe under Labour – they have raised taxes on jobs, savings, pensions and now possibly the family home too.”
London and the South East of England would be the most heavily affected, with the capital estimated to pay an additional £8.5bn per annum and the South East £938m each year.
Homeowners in some London boroughs could be forced to swallow tax rises of more than £1bn. In Westminster, which has 132,270 homes, property owners would collectively face a £1.5bn land value tax, a significant rise from the £179m paid in council tax.
Camden, Wandsworth and Kensington and Chelsea would also demand tax bills of more than £1bn under a land value tax.
Meanwhile, the North West of England – home to Mr Burnham’s Makerfield constituency – is expected to pay £2.1bn less than under the current council tax system, while Yorkshire is expected to be £1.8bn better off.
Recent Telegraph analysis found that adopting a land value tax would lead Southerners to pay triple the bills of those in the North, at £1,650 compared with £600 on average.
Mr Burnham was contacted for comment.
