Earlier quoted context omitted.
You are proposing to remove taxation on a bull market (property)? This would inflate prices even more, as investors make a run for nice tax-free properties. It doesn't make sense, sorry. You need to remove incentives to invest in property altogether . It's one of the worst and most unproductive markets, and not even a market in practice because everyone needs a home. My personal pope-emperor utopia would forbid compa…
Here's an idea. Make utility services scale with people density. Relax restrictions on how much they can profit off sqft. Single home dwellers are penalized with increased upkeep costs and higher density buildings are encouraged.
Utilities should be paid per-use, just as it is now. People with bigger houses are naturally going to pay more because a bigger house usually needs more power/fuel for HVAC, unless their house is more efficient. Also, we need to incentivize making homes more energy-efficient, and regressive policies like yours discourage efficiency. Smaller isn't always better; crappy old small houses and apartments can easily use far more energy than new McMansions.
And that leads me to one big problem in the rental market is that landlords never spend a dime on improving or renovating homes for better energy-efficiency, because the tenant has to pay all the utilities.