Stamp duty is to be axed for a year on properties costing less than £175,000 as part of a package of measures being unveiled to help first time buyers.

The level at which the 1% purchase tax has to be paid is to be increased from £125,000, from Wednesday morning.  The £600m move - which applies to residential property - will save someone buying a £175,000 house £1,750.  The government estimates half of all property transactions will now be exempt from stamp duty.  Previously one in three transactions did not attract any tax when the threshold was £125,000.

'A Sensible measure'

The move was welcomed by Britain's biggest mortgage lender Halifax.  A spokeswoman said: "This is a sensible measure and it will help first time buyers access the housing market."