As house prices vary considerably by area as yesterdays blog showed. Although there are factors which have an influence across England there are also local (and not so local factors).
Just by moving from one area to another people can increase house prices if they come from an area with higher house prices.
The objective should be to create a level playing field so that people living in an area with high house prices/values, cannot use the excess value to push up house prices in an area with lower prices.
Each area – probably an (old) county or large city would constitute a local housing market (LHM).
Purchasers would be free to buy within the LHM.
If a purchaser wanted to move to an area with lower prices, they would only be able to bid at the local price. The difference in price between the new and old location would be transferred into a central fund. [For example, if you wanted to move from Merton to Cornwall, you could pay no more than £216,700 for a property. The difference of £292,500 would be deposited in the central fund].