The Government announced today that as from tomorrow (3rd September 2008) there will be a 'stamp duty holiday' for the next year for properties less than £175,000. This in effect means that the lower threshold for 1% stamp duty has been raised from £125,000 to £175,000. The incentive however will not affect buyers of properties over £175,000 who will still have to pay 1% stamp duty. It will also be of no benefit to buyers of properties worth more than £250,000, who will continue to have to pay 3% stamp duty as will buyers of homes above £500,000 which still attract 4% stamp duty.

The average UK property is currently £164,000 and £130,000 in the north of England but in London the average is £285,000.