STAMP duty has been suspended for first-time buyers on houses costing up to £250,000 for this year and next.

But estate agents don’t believe the move, announced by Chancellor Alistair Darling in his Budget, will have much effect on purchasers in East Lancashire.

They agree with the argument from industry bodies that the tax break would have been better applied to all home buyers.

The change will be funded by a planned increase in stamp duty to 5 per cent for properties costing more than £1million.

Previously stamp duty for buyers of properties worth between £125,000 and £250,000 was one per cent.

Independent agent Craig Pickles who runs proctors in Blackburn and Darwen, commented: “Unfortunately in this area many first-time buyers are looking at homes costing under £125,000, so would not have paid stamp duty anyway.

“While any concession is welcome, it will benefit only a small percentage of purchasers, rather then helping the majority.

“If stamp duty had been abolished for everyone it would have had a bigger impact and given the market the shot in the arm it desperately needs.”

John Kenyon, a partner in Mortimers, commented: “Any move that makes things easier in home buying is good news and this is welcome for some first time buyers, but disappointing for everyone else as it’s not been introduced for all buyers.

“Another problem is that it is still difficult for first time buyers to get funding; so we need the banks to free up loans, so first time buyers can can get onto the property ladder and then start a ripple effect to stimulate the market.”

The Council of Mortgage Lenders has also argued that it would have been far simpler to exempt all properties under £250,000, rather than restrict it to first-time buyers only.

Both the CML and the Chartered Institute of Taxation warned that defining and proving who is a first-time buyer could be difficult.

Builder Taylor Wimpey, with developments in Blackburn and Little Harwood, however, welcomed the stamp duty move after seeing a large increase in visitors to its website.

There was a 112 per cent increase in searches in the north west area and a 40 per cent jump in visitors to its shared equity schemes page.

Jason Newton, regional sales and marketing director said the change was good news for local buyers who could now save up to £2,500 on the cost of purchasing their first home.