There has been a mixed reaction to the budget announcements from the housing market. The doubling of the threshold for stamp duty to £250,000 was seen as a boost for first-time buyers who save up to £2500. The Labour move to fund this from the increase in stamp duty on homes costing over £1 million is unlikely to draw any adverse comment from the Tories who will not want to be seen as favouring the rich. The extension of the Support for Mortgage Interest scheme for another six months will mean that homeowners struggling with mortgage interest payments continue to be supported at the rate of 6.08 percent.

Liam Bailey, who heads residential research at Knight Frank, had this to say"The changes to Stamp Duty announced today amount to a tax on London - only 44% of property sales will slip under the new zero-rate band compared average of 74% in the rest of the country. In addition well over 60% of all £1m+ transactions affected by the new 5% rate take place in the capital.

"The removal of stamp duty for first-time buyers purchasing properties under £250,000 is a welcome move and will benefit the new-build market that has been particularly hard hit by the housing downturn. Even in London, 44% of the properties sold last year were below £250,000. In some parts of the UK virtually all the housing stock will now be free of stamp duty for first time buyers."

Stamford Homes' regional sales and marketing director Peter Bond says:"This is wonderful news for first time buyers, and as an industry we must welcome any move which enables people to gain a foothold on the housing ladder."

News brought to you by Mortgage ComparisonSpecialists The Mortgage Finders