"A house going over the Tory proposed threshold of £250,000 would attract £5,000 in tax," Rics economist, David Stubbs said. "An alternative would be the 'marginal' tax rate system used for calculating income tax, where tax is paid on just the amount over the threshold."

"Tory plans will help many first-time buyers but not those looking to trade up and perhaps start a family, particularly in southern England.

"A move to use the £1bn to smooth out the tax hurdles and equate the tax take more accurately with the price paid may have been more welcome."

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