The new stamp duty system may save money for 98% of homebuyers but the wealthiest 2% won't be celebrating.
The burden of this tax will increasingly fall on already overburdened buyers in London and the South East, with the highest rate of stamp duty increase in 7% to 12% for properties above £1.5 million, analysts say.
This is likely to intensify the slowdown at the top end of the property market, because people buying a property costing more than £937,000 may pay tens of thousands of pounds more.
Simon Tyler, managing director of Tyler Mortgage Management, said the top end of the market "is getting absolutely whacked" by this new system.
"The Chancellor's stamp duty announcement replaces a system that was so grossly unfair, it is hard to believe it stayed in place for so long.
"Buyers outside of London and the South East where more properties fall below the £250,000 threshold will be the biggest winners, but when you get to around £500,000 it effectively becomes the same until it becomes more expensive as you get close to £1 million.
"This is going to lead to a continued slowdown in properties at the upper end of the market, which is getting absolutely whacked by this new system.
"I don't suppose many people will have much sympathy but it will be a kick in the guts for people who are stretching to borrow to buy that multi-million pound house, and will doubtless dampen demand at the top end as people reconsider the economics of moving compared to improving or expanding their existing home instead."
Caroline Artis, senior partner at accountants EY, said: "While the Chancellor noted that stamp duty will be cut for 98% of people who pay it, the news that it will increase for anyone buying a house costing more than £937,501 will cause dismay in London where the number of £1million houses has increased by over 300% in the last 10 years.
"Across the UK, 1.2 million homes were sold in the year to June 2014. Despite only 15% of these being based in London, Londoners paid 42% of the stamp duty collected.
"This percentage looks set to increase given these new marginal rates will increase the bill for homes worth over £937,000. Yet another issue for Londoners trying to buy a family home."
Lauren Awcock, investment manager at London Central Portfolio, said close analysis of the new figures showed that the buyers who will suffer most are those buying between £1.5 million and £2 million.
"These are the very people who have tried to skirt under the £2m mark to avoid the 7% stamp duty level and potential mansion tax.
"They will be having to find up to an additional £53,750, a 54% increase on their anticipated bill.
"This is exact same amount as someone buying a property for £2.8m, who will therefore see a 27% increase."
Awcock said that those buying between £2 million and £3 million will now be worse off than under the proposed mansion tax, where the likely bill is £2,500 a year.
"At £3 million, the increase in stamp duty will be £63,750, for example, taking 25 years to balance the books.
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