Meanwhile, first-time buyers will be hit by the government’s decision not to extend the relief on stamp duty for people buying their first home.
The Conservatives raised the threshold for when first-time buyers pay stamp duty from £300,000 to £425,000 in 2022, while the threshold for other buyers was doubled to from £125,000 to £250,000.
However, the thresholds will revert back to the lower levels from next March.
Ben Thompson, deputy chief executive of the Mortgage Advice Bureau, criticised the move.
“People will simply choose not to move, continue to be stuck renting with all the uncertainty that that brings,” he said.
“With house prices rising, many more buyers will end up with a stamp duty bill, or face paying even more.”
The current rates of stamp duty are:
From Thursday, people buying a second home will pay an extra 5% on top of this.
