Stamp duty change may be extended

It is thought that the Chancellor may use the Budget to announce that last year’s temporary cut in stamp duty will be extended for a further three months.

The move will form part of a £1 billion package aimed at stimulating the housing market.

Alistair Darling increased the level at which 1 per cent stamp duty is paid on house sales from £125,000 to £175,000 last September.

The level is due to revert to £125,000 this September, but Mr Darling may decide to keep the so-called ‘holiday’ until the end of the year.

Other measures designed to boost house building and house purchases could include extra money to restart construction projects that have stalled because of the recession.