Among the schemes announced on Tuesday was an increase of the stamp duty threshold from £125,000 to £175,000 for the next year, aimed at helping more people to get a foot on the housing ladder.

Other measures include 'mortgage rescues' for families at risk of repossession, earlier income support payments and funding being brought forward to build more social housing.

Meanwhile, a scheme to help sales of new homes will see the Government and housebuilders co-fund loans of 30 per cent of the property's value to first-time buyers.

The move is also aimed at helping developers, which have seen a dramatic down-turn in sales of new properties this year, following the house-building boom of recent years.

Henrik Darlington, managing director of Land Charter Homes, which is building at Abbots Gate, in Bury St Edmunds, said it was too soon to say whether the scheme would help.

"We have been trying to get a clear briefing of what the impact will be," he said. "We haven't yet finished any homes at Abbots Gate, but we're launching our show homes this weekend.

"People don't seem to be buying houses now unless they can see the finished product, but we've got a couple of people who have put their names down, subject to seeing the properties.

"It's very hard work at the moment. Elsewhere we're making sales, but only very slowly."

Taylor Wimpey, which is selling newly completed homes at its new Moreton Hall development, declined to comment on whether the announcement would help the company.

On Wednesday morning, its website listed four properties for sale at the site, with just one – a one-bedroom apartment – offered at less than the new stamp duty threshold, while three-bedroom houses started at £189,995, just above the new level.

Estate agents in Bury said the stamp duty change would not have a significant impact on sales, but welcomed an end to speculation over the move – and many said raising the threshold to £250,000 would have given the market a 'kick start'.

David Bedford, of Bedfords, in Guildhall Street, said only a small percentage of homes in the area fell into the price bracket and described the change as 'tinkering'.

Roger Davison, of Lacy Scott & Knight, in Risbygate Street, said the Government should look more broadly at stamp duty and perhaps introduce a two per cent band – currently. homes over £250,000 are subject to a three per cent levy.

"What it has done is nothing, confidence has now gone out of the market," he added.

John Casson, of Marshall Buck & Casson, Guildhall Street, said first-time buyers would benefit, but added that a £250,000 threshold would have helped all families.

"We should be grateful for small mercies," he said.

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