Housebuilders have welcomed the government’s move to slash stamp duty set out today, but some commentators remain sceptical the move will significantly increase overall housing affordability.

Kwasi Kwarteng, in the first fiscal event under the Truss government, announced the changes as part of a tax-cutting, deregulatory budget aimed at boosting economic growth. The government announced the duty-free threshold will rise from £125,000 to £250,000, and the first-time buyer threshold from £300,000 to £425,000. First-time buyer stamp duty relief will be available for properties worth up to £625,000 rather than £500,000.

A spokesperson for the Home Builders Federation, said: “We welcome the stamp duty cut that will help support buyers, particularly first-time purchasers, stimulate demand for new homes and generate market and economic activity.