FTBs rushing to buy before Stamp Duty break ends

In a 2% rise on December, the National Association of Estate Agents (NAEA) said this represents the third consecutive month of increasing sales to FTBs in contrast with the usual seasonal lull.

NAEA President, Wendy Evans-Scott, said: "The NAEA and other property specialists campaigned hard for the Government to introduce the tax exemption to support First Time Buyers, and these latest figures certainly suggest that Stamp Duty is a key factor for those on tight budgets purchasing their first home."

The NAEA said it is "deeply disappointed" Ministers still plan to axe the tax break on 24 March joining other critics including Legal and General and the CML who have called for a rethink.

Since the tax break started in March 2010, figures suggest first-time buyers have saved a total of £319m and helped 170,000 home owners, according to Santander.

Back in December, a Mortgage Solutions poll revealed 57% of brokers think the end of the first-time buyer Stamp Duty holiday for properties of up to £250,000 will further damage the first-time buyer market.

Meanwhile, from January, sales increased slightly across the property market to an average of six per branch against five in December, but supply fell to its lowest level in 19 months to just 60 properties per branch.

Evans-Scott warned further government moves could destabilise an already fragile market, so where LTV capping could prevent an unnatural price boom, expecting first-time buyers to come up with ever larger deposits will exclude many.

This week's Mortgage Solutions poll asks do you think the government will extend the Stamp Duty holiday? Vote now.