The most relevant to the residential property market is the rise in the threshold at which Stamp Duty Land Tax becomes payable. As a result of the Chancellor’s statement this morning, SDLT now becomes payable on the purchase of the principal home at £250,000 and for first time buyers this threshold is now raised to £425,000.

The SDLT thresholds in respect of second homes remain unaffected by the government’s announcement today.

This change in the SDLT thresholds, is just one of a very significant number of changes to taxation that the Government is making in a determined attempt to stimulate growth, and arrest the slide into a prolonged recession. Coupled with other tax reductions, income tax at the basic level and for those in the highest brackets, and the volte face on National Insurance, the SDLT threshold rise should, in the short term at least, help to support the residential property market.

Indeed, experience suggests that any favourable SDLT measure tends to have an immediate impact on the area of the property market to which it applies. Plenty of buyers will be keen to take advantage of any relief they can get in these challenging financial times.