STAMP duty reform is already generating an improved housing market, according to a Worcestershire property agent.

Chartered surveyor Peter Chesshire, of Bromsgrove-based A Victor Powell, said the early signs were good, building on substantial progress in 2014.

“This fairer stamp duty system is rejuvenating the market and leading to more transactions,” he said.

“It is very encouraging. Low interest rates, low inflation, falling unemployment and Government initiatives have all come together to produce much stronger levels of confidence across the sector, both buyers and sellers.

“Confidence drives the housing market and, with burgeoning numbers of first timers looking to get on the ladder, it seems 2015 will produce a solid performance.”

It is estimated that 98 per cent of homebuyers will see a saving from the old system. Based on 2013/14 transactions data from the Land Registry, nearly 590,000 purchasers in England and Wales will be winners under the new stamp duty regime, with an average benefit of around £1,600.

That includes £4,000 savings at £300,000 and £600,000 levels. Mr Chesshire said: “Under the old thresholds there was a serious bottleneck at the £250,000 mark, with stamp duty payments soaring from £2,500 to £9,000 on a £300,000 property.

“This frequently led to properties not achieving their full value if they were worth slightly over £250,000 but purchasers not being prepared to pay more.

“The new system is very welcome and I believe it will have a very significant effect for the better on the whole housing market.”

The firm claims that only properties valued at more than £937,500 will face higher Stamp Duty Land Tax (SDLT) charges.