PLANS to cut Stamp Duty have been welcomed by the National Association of Property Buyers.

But the NAPB, who have long called for a reduction in rates, say Liz Truss must ensure they are targeted in the right way.

Spokesman Jonathan Rolande said: “We welcome a targeted cut in Stamp Duty as this is what we’ve been calling for now for many months.

‘But like any changes to the tax regime, it’s vital that any cut is targeted to help those who need it most and as an added benefit, that it can be used to stimulate certain sectors of the property market.

“First-time buyers are always in need of a helping hand. Currently, they pay nothing up to a purchase price of £300,000. With huge inflation in the property market, this threshold is now looking on the low side. Increasing it to £350,000 would allow buyers to purchase at today’s prices without the burden of tax. A small adjustment such as this will not lead to a stampede and the consequent price rises seen thanks to previous cuts.

“Although fuel bills have now been capped at a more affordable level, there are still many pensioners living in large family homes that will find them increasingly hard to maintain and keep warm. To encourage them to sell, freeing up much-needed bedroom spaces in family homes, I’d like to see targeted Stamp Duty relief for retired people trading down market, say from a 4 bedroom detached to a 2 bed property. Where the number of bedrooms is being reduced, Stamp could be zero on the smaller purchase saving £7500 on a £350,000 purchase. Additionally, rates should be reduced in areas that require regeneration, encouraging investment exactly where it’s needed the most.

Mr Rolande added: “A healthy property market is key to a successful economy. I hope that we will not see blanket tax cuts that will further fuel the market that, even cooled in the last few months, is still red-hot. Liz Truss has the opportunity to re-balance the market with tactical tax adjustments – I hope she does so.”