The stamp duty threshold uplift was launched by Liz Truss during her brief spell in Downing Street. The change was one of few tax cuts from Kwasi Kwarteng’s ill-fated mini Budget that were kept by Rishi Sunak.
Mr Sunak later pledged during the election to make the £425,000 stamp duty threshold for first-time buyers permanent.
Without the stamp duty cuts, buyers of an average home costing £300,830 will be hit with an additional £2,500 in taxes. House purchasers in the regions of the country with higher house prices, such as south-west England, will see the biggest increases.
Lucian Cook, of estate and letting agent Savills, said: “If the Government is going to deliver its ambitious house-building targets, it will have to provide more, not less, of an incentive for first-time buyer activity.
“This is especially the case in London and the South East, where higher house prices make saving for a deposit especially daunting and where buyers will have benefited the most from the lowering of stamp duty thresholds.”
Ms Reeves intends to raise £35bn in the Budget on October 30 and is reportedly considering a slew of changes to inheritance tax.
A government spokesman said: “We do not comment on speculation around tax changes outside of fiscal events.”