There is concern that first-time buyers are being priced out of the market

Foreign buyers who speculate on property could be forced to pay a higher stamp duty rate under government proposals. Theresa May will launch a consultation this week on an extra level of tax for non-UK residents and companies who buy homes in Britain.

At the moment, non-resident buyers pay the same stamp duty rate as people living here.

There is growing concern that first-time buyers are being priced out of the market in parts of the UK, especially London and the southeast, partly because of foreign speculators driving up the cost of housing.

The revenue generated from extra duty, estimated to be up to £120 million a year, will also be used to address the problem of homelessness.

Buyers who have spent less than six