RESIDENTS across the city planning to buy a new home will be able to save costs, following a recent announcement.

Chancellor Rishi Sunak revealed today that he was temporarily raising the stamp duty threshold to £500,000 until March 31 2021.

This means that stamp duty will be removed for home buyers up to that price.

But Owner of Hunters Estate Agents Southampton Jonathan Clegg said he doesn't know if removing the stamp duty tax will have a "large enough impact".

He said: "Any cost saving for buyers will obviously be of benefit, so it will have a positive impact. It will save them a couple of thousands at most, but I don’t know whether it will have a large enough impact in the whole house-pricing process.

"Stamp duty is a large element of it, but whether it is quite enough to encourage people that cant afford to buy now, I doubt it."

First-time buyers were already exempt from buying stamp duty up to £300,000 before the government announcement.

Jonathan also said that the average house price in Southampton is £300,000, which usually means a stamp duty cost of £5,000.

"How much difference it will make is the question - whether that's enough to get people moving, I don't know," said Jonathan.

"Everyone is feeling the pinch at the moment. Like the tax system, it is fairly complicated. Up to £125,000 you don't pay stamp duty unless you own an additional property."

Measures announced by Mr Sunak include:

- Temporarily raising the stamp duty threshold to £500.000 million until March 31 2021.

– A £2 billion scheme of taxpayer-funded work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.

– A £3 billion green package, with grants for home-owners and public buildings to improve energy efficiency.

– A £111 million programme of unpaid traineeships combining work experience with training.

He said the change – which will take effect immediately – will mean nearly nine out of 10 people buying a main home this year will pay no stamp duty at all.