The stamp duty holiday, for homes up to £500,000, will be extended by three months, to the end of June from the end of March. It allows homebuyers to save as much as £15,000 in stamp duty and has been credited with boosting the property market and buoying prices. The threshold will fall to £250,000 from July to the end of September before retuning to its usual level of £125,000 in October.
The government will also provide mortgage guarantees for new homebuyers who cannot afford large deposits. Mortgages of up to 95 per cent for home purchases of up to £600,000 will be available from next month.