Chancellor Kwasi Kwarteng has announced a flurry of new stamp duty thresholds for first-time buyers on a permanent basis.

Alongside this, stamp duty will be eradicated for purchases of land and buildings for commercial or new residential development.

These announcements come as part of the new government’s mini-budget, in which a host of other tax cuts were announced with the aim of boosting UK economic growth.

“Today’s statement is about homeownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society,” said Kwarteng. “To support growth, increase confidence and help families aspiring to own their own home I could announce that we are cutting stamp duty.

“In the current system, there is no stamp duty to pay on the first £125,000 of a property’s value.

“We are doubling that to £250,000. For first-time buyers (FTBs), who currently pay no stamp duty on the first 300,000 pounds, we’re increasing that threshold to £425,000.

“And we’re going to increase the value of the property on which FTBs can claim relief from £500,000 to £625,000.

“[This will] mean that 200,000 or more people will be taken out of paying stamp duty altogether. This is a permanent, effective, from today.”

Shadow chancellor Rachel Reeves responded to the announcement saying: “These stamp duty changes have been tried before. Last time the government did it, a third of the people have benefited by buying a second home a third time or a buy-to-let property.

“Is that really the best use of taxpayers money when borrowing and debt are already so high? And can the chancellor confirmed today how much of the stamp duty cuts will go to those purchasing multiple properties? Instead of the stamp duty going up and down like a yo-yo. we need to get building.

“We need to target support at FTBs and tackle the issue of homes being sold to overseas investors.”

Westcombe Group chief executive Kamal Pankhania says: “Stamp duty disproportionately affects the average buyer, and this is a welcome step which will help to stimulate the housing sector, making it easier for FTBs to get on the housing ladder and, most importantly, encourage the construction of more housing, which is so needed across the UK.

“The chancellor has inherited a decades-long challenge and I would urge him to go further with reforms. For instance, exempting FTBs from paying the tax entirely would help support younger people who so often struggle to buy their first home.

“Similarly, continuing to raise the threshold at which stamp duty kicks in in line with average house prices increases will help ensure that more people can be exempted from paying the tax altogether. These are the bold steps needed if we are to rise to this challenge.”

And Phoebus Software chief sales and marketing office Richard Pike comments: “The stamp duty land tax reform announced today is something that the industry has been crying out for.

“To hear the word ‘permanent’ means that we no longer have to brace ourselves for the onslaught from homebuyers trying to get purchases over the line before another looming deadline. Music to the ears of many conveyancing firms, which were put under immense pressure last year.

“The increase in the threshold for FTBs will enable more to get onto the property ladder, but there is still the question of supply.

“Although the chancellor announced plans to release government land to allow for development across the country, which is great news for future supply, that does not make more properties available now.

“The lack of supply is already pushing prices up and now that there is added incentive to move or buy that situation is only likely to increase. As ever the housing market is caught in a catch-22.

“The good news is that housing is definitely on the government’s agenda and that is something we’ve been calling for, for a very long time.”