The new £250,000 tier doubles the current tax-free threshold from £125,000 and will see the vast majority of first-time buyers escape the tax.
The help for first-time buyers will be paid for through a rise in Stamp Duty from 4% to 5% for properties worth more than £1m.
The industry broadly welcomed the announcement but some argued that the Chancellor could have gone further to help the market.
Richard Morea, technical manager at London & Country, said raising the threshold would be good news for the housing market as first-time buyers will be able to access the market in greater numbers.
He added: “First-time buyers are vital to the housing market and this move will help them as it will go some way towards easing their path to home ownership. However, it is still tough for them because there are not many deals available with a low deposit and many of the rates on offer are unattractive.”
Robert Sinclair, director-general at the Association of Mortgage Intermediaries (AMI), said limiting the exemption to just first-time buyers restricted the benefits which could have been brought to the property market.
He added: “By introducing a new level of the tax at £1m we continue to have an unfair slab tax that will cause a £10,000 jump in the tax for a £1 increase in the price of the property. This smacks of political opportunism.”
The CML agreed with AMI that it would have been simpler to exempt all properties under £250,000, rather than to impose the additional first-time buyer restriction.
