Foreign buyers are to be targeted by a new tax on the purchase of new homes, as Theresa May says it "cannot be right" that those who don't live in the UK can buy properties as easily as British residents.

The Prime Minister will announce plans to levy a new stamp duty of up to three per cent on individuals and companies not paying tax in this country.

The proceeds of the tax, which will be applied on top of existing rates, have been earmarked for schemes in the government's rough sleeping strategy.

The announcement, on the first day of Conservative Party conference in Birmingham, is likely to be seen as an attempt to fight Jeremy Corbyn on his own turf after a series of eye-grabbing pledges at Labour's conference last weekend.

Mr Corbyn announced a major tax raid on the owners of second homes, the proceeds of which he said would help homeless families with children living in temporary accommodation.