The Chancellor is reportedly planning to extend the stamp duty holiday by another three months in a boost to buyers.

The Treasury announced last year that it would temporarily raise the stamp duty threshold from £125,000 to £500,000 for property sales in England and Northern Ireland.

But many people have been left scrambling to complete their transactions with just five weeks to go until the March 31 deadline, worried that if they do not, they could be left with a £15,000 tax bill.

There have been concerns that some buyers may pull out if they do not meet the deadline.

Chancellor Rishi Sunak will use his Budget next week to move the deadline to the end of June, reports The Times.

If the Government decides to extend the deadline by six weeks, between 120,000 and 160,000 additional property transactions in England could potentially benefit from the tax saving, according to property website Rightmove's estimates.

A pedestrian wearing a face mask walks past the window of an estate agents
The measure was introduced in a bid to boost the housing market

A recent report by the right-leaning Centre for Policy Studies (CPS) said the tax break had increased house sales to their highest level since before the 2007 financial crisis.

The body is calling on the Government to either permanently increase the threshold on primary residences to £500,000 - at a cost of £3 billion - or abolish it altogether.

Jethro Elsden, CPS data analyst and the report's author, said scrapping the holiday would be a "sledgehammer blow to the housing market".

Estate Agents' "For Sale", "Sold", and " To-Let" boards are pictured outside residential properties
The threshold has been temporarily raised to £500,000

Bridget Phillipson, Labour's shadow chief secretary to the Treasury, described the reported plans for a stamp duty extension as "another tax giveaway to second homeowners".

She said: "These are the wrong priorities in the middle of the worst economic crisis of any major economy.

"The Chancellor should be taking action to protect family finances and secure our economy, not hitting them with tax rises while cutting them for landlords."

It comes as the average UK house price reached a record high of £252,000 in December 2020, with property values surging by 8.5% year on year, according to the Office for National Statistics.

A spokesman for The Treasury said they could not speculate on tax ahead of fiscal events.