“Anything that puts new life back into the market, especially at the lower end of the purchasing ladder, will be well received by every house builder, site worker and estate agent,” he said.

“Since the well-publicised rumours of a few weeks ago that the Government might be about to take action on stamp duty, lots of potential house purchasers have put their plans on hold in the hope that they might save some money. At least now we know the score.”

The Treasury has announced that homes worth £175,000 or less are to be exempt from stamp duty for 12 months.

“This will save homebuyers up to £1,750 when they purchase a property.

Peter Ward, whose company Peter Ward Homes is celebrating 30 years in the industry this year, said: “We have continued to move forward with our developments and we have buyers waiting to sign on the dotted line but of course if one section of the chain is not moving this has a knock-on effect on just about everyone.

“This latest announcement will encourage people at the bottom end of the market to buy which will in turn put some momentum back into the house-buying chain at the higher levels.”