Homes worth £175,000 or less are to be exempted from stamp duty for 12 months as part of a package to revive the housing market, the British government announced today.
The change, which comes into effect tomorrow, raises the threshold on which 1 per cent stamp duty is paid from its current level of £125,000.
The move will save eligible home-buyers up to £1,750 when they purchase a property, and relates only to buildings entirely for residential use.
Earlier today British prime minister Gordon Brown unveiled a package of new measures to help boost the market, including plans to offer five-year interest-free loans for some first-time buyers - both to help people move into affordable homes and support the house building industry.
House prices in Britain are falling and home repossession orders in England and Wales have risen to their highest level since the housing market crash of the early 1990s.
The government said the housing package would help vulnerable families struggling with mortgage payments avoid losing their homes and bring forward funding for new social housing from existing budgets.
Communities Secretary Hazel Blears said the package was aimed at "people who just need that little bit of extra help to keep them afloat."
A government source said those measures would cost about £1 billion.
Mr Brown also plans later this week or next to look at ways to help households cope with the rising cost of fuel bills, perhaps by asking utility firms to pay money into a voluntary fund that could be used to make poor households more energy efficient.
Reuters, PA