Stamp duty is not the only consideration

David Kuo, Head of Personal Finance at money website Fool.co.uk, says "The temporary raising of the stamp duty threshold from £125,000 to £175,000 will save homebuyers up to £1,750 when they purchase a property.

"As a result of today's concession by the Treasury, almost half of all housing transactions will now be exempt from stamp duty. However, stamp duty is just one of many costs that house buyers need to consider when purchasing a home.

"Affordability is crucial, and with house prices still overvalued Fool.co.uk urges prospective buyers to tread carefully. Any benefits from a one-off tax boost could be wiped out if house prices fall as little as 1%.

"Additionally, a stamp duty holiday will be forgotten when you are mid-way into a 25-year mortgage term. The saving of £1,750 in stamp duty, whilst welcome, represents less than 0.5% of the total repayments on a £175,000 mortgage over 25 years.

"In a falling property market, it is more important to be able to regularly overpay your mortgage to sidestep the problem of negative equity rather than be swayed by temporary tax giveaways."