RADICAL and much needed changes to the stamp duty announced in the Chancellor’s autumn statement will boost the residential property market, a leading South Wales estate agent claims.

Mark Roberts, managing director of Newport-based Roberts & Co, said: “The announcement by the Chancellor of the Exchequer George Osborne on changes to stamp duty is good news for the South Wales market when you consider that the average house price here is somewhere in the region of £175,000."

Roberts & Co, which has its headquarters in Bridge Street, Newport, has a total of 12 estate agency offices throughout south east Wales. The estate agent also handles higher end, more expensive property, through its Town & Country Collection subsidiary based in Usk.

Mr Roberts said: “The new rules which are now in forced as regards stamp duty means that a purchaser at this level will save £750 in tax.

“As a result of the previous stamp duty rules there was, in effect, a no-go zone between the prices of £250,001and £280,000 because of the three per cent stamp duty.

"Now, as a result of the changes announced in this Autumn Statement, you will see more homes achieving their true value rather than having to reduce to £250,000.

“The new stamp duty rules will also serve to stimulate the housing market especially at the very important first-time buyer end of the market when people struggle to get the deposit together to put down on their first home.

“The new measures will, I am confident, help to stimulate activity at this level and the knock on effect will be that the entire market could well be reinvigorated.

“Another bonus of these changes will be that the shot in the arm for the housing market that this new measure delivers, will also act as a stimulus for those looking to relocate for work. The previous legislation acted as a brake on labour mobility, the new measures could help oil the wheels for households in terms of mobility and ability to access the housing market in a new area when they need to move for work.

“Another benefit for the changes in the stamp duty could be further boosting the demand for the construction of new homes to cater for the pent up demand for new housing.”