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"The temporary exemption meant first-time buyers were free from the 1% stamp duty on homes costing under £250,000."

"The government is publishing analysis showing that the stamp duty land tax relief for first-time buyers has been ineffective in increasing the number of first time buyers entering the market."

This relief will therefore end on 24 March 2012 as planned. The government is instead prioritising more effective measures which provide better value for money.

The government's housing strategy, announced earlier in the month, included a mortgage guarantee scheme to encourage lenders to offer 95% mortgages to buyers of new homes.

Paul Smee, director general of the CML, said: "While the [stamp duty] concession may not have stimulated additional demand, it was a significant help to home-owners entering the market and its removal runs counter to the themes of the new housing strategy.

"It is likely that we will see a bunching of eligible first-time buyer transactions early next March to beat the expiry date on the concession."

First-time buyers are the lifeblood of the property market, and our recent data shows the number of first time buyers getting on to the housing ladder has reached a three-year low.

"With the stamp duty holiday disappearing from next March, the government will need to do more to help the fragile first-time buyer market."

Stamp Duty After 24^th March 2012                         

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