Since the start of the pandemic, house prices have jumped nearly £39,000 higher after a race for space and demand was propped up by the Government’s stamp duty holiday, according to data recently published by Halifax.

However, with the normal rates of stamp duty now back in force, the surge in prices means many sellers this year will find that their homes have entered a new tax band. A typical house worth £278,123 would pay £3,906 of stamp duty, according to Which, the consumer magazine.

It came as the Confederation of British Industry (CBI) predicted that business investment will soar 20pc if the Chancellor opts for the “big prize” of slashing firms’ tax bills permanently following the end of the “super deduction” next year.

The Chancellor promised at the Spring Statement to consult with business leaders on a new incentives scheme to boost investment after the end of the “super deduction”, which takes 130pc of investment off taxable income.

CBI director general Tony Danker told The Telegraph: “The idea that every year you could write off 100pc of your business investments against your tax bill straightaway: all our research for firms looking into options following the super deduction says that’s going to give you the biggest bang for your buck.

“That could see a 20pc rise in business investment so that is I think the best prize.”