Affected buyers are delighted they will save up to £1,750, but some estate agents don't think it will make much difference to the current gloomy climate.

The government unveiled the one-year stamp duty holiday on all houses worth up to £175,000 on Tuesday. Previously stamp duty was payable on properties over £125,000.

The move is an attempt to try and boost the flagging housing market.

Mum-of-two Sam Morton, 37, who is currently renting in Hastings whilst looking to buy a property here was delighted with the news.

"It's really good," she said. "I was looking at properties up to about £185,000 but now I will definitely look for something under £175,000.

"If you think of the solicitor's costs and all the other expenses this will help a lot.

"It will save me nearly £2,000."

She agreed the change could lead to a drop in prices of properties which are currently just over £175,000 which was also good news for buyers.

But local estate agents were not so excited about the news.

Simon Spare from Chris Campbell's said: "I fear the recent move might be a case of too little too late, but in a difficult market any concession by the government has got to help, especially in an area like Hastings and St Leonards where a large proportion of homes fall under the £175,000 mark.

"It might encourage first-time buyers to see what good value our area represents and hopefully this will feed through to the market as a whole."

Negotiator Robert Smith at John Bray and Sons in the Old Town said: "We think it's not really going to make a lot of difference.

"If you are spending £175,000 on a house anyway then £1,500 or so less is not much difference.

"The major problem for first-time buyers is lenders want larger deposits - a 20% deposit is not unusual. A year or two ago people were getting 95% mortgages, you can still get them but the interest rates are much higher."

Robert thought dropping the three per cent stamp duty on more expensive properties would be more helpful to the market.

However, Roger Saunders of Rush, Witt & Wilson in Bexhill was optimistic.

He commented: "By announcing a 12 month stamp duty holiday, the government has made a positive step towards helping to kick start the housing market."

In a bid to further tackle the effects of the "credit crunch" the Treasury also announced this week plans for interest-free loans for first-time buyers on low incomes, help for those facing repossession and more money for social housing.