This year's Budget could reveal a rise in capital gains tax (CGT) from 18 to 25 per cent or more for homeowners.

The editor of Property Investor News suggested that an increase will be "very likely" but also reminded that tax was higher two years ago.

Richard Bowser commented: "It is just a fact of life that we are all going to have to accept. People should always remember that only a few years ago it was 40 per cent."

Bowser's comments follow the findings of Cluttons, which revealed that people with two homes are placing their second home on the property market before the change in legislation.

According to Mr Bowser, the effects of the tax increase will be stronger than last time when additional relief for homeowners alleviated the flat rate cost.

People planning to move house could make the process easier by using self storage facilities.