Pictured above: Frances Lees

The Government is being urged to retain or extend the Stamp Duty holiday for first time buyers.

Frances Lees, head of residential property at Lodders Solicitors, said the sector badly needed a boost.

Both she and Tom Dennes, of Bigwood Country Homes, agreed that the imminent jump of one per cent for £1 million-plus houses was unlikely to put off wealthy purchasers.

Both firms are based in Stratford-upon-Avon.

With the Budget taking place on March 23 and the increase not due to come in until April 6, Ms Lees said it would be interesting to see whether the Government made any changes.

She thought it unlikely.

"This was one of the last acts of the Labour administration but politically it would not look good if the Coalition departed from the million pound threshold. There has been all the controversy over bankers' bonuses and the like, so it might prove a bit of a nightmare for them if they were to act."

Currently, any home selling above £500,000 attracts four per cent stamp duty, so a home costing £1.1 million obliges buyers to pay a hefty £44,000 duty to the Government. From April 6, homes over £1 million will attract five per cent duty - so that a £1.1 million property requires a £55,000 contribution.

The increase was designed to fund a two-year suspension of the one per cent rate on homes bought by first-time buyers that are worth between £125,000 and £250,000.

That is now at the end of the first year.

Ms Lees said given the state of the market, the difficulty getting mortgages and the need for deposits of around 20-25 per cent, the sector badly needed a "shot in the arm".

She added: "I would urge the Government to maintain or extend the holiday."

The top end over £1 million market revolved more around confidence "The Stamp Duty rise equates to quite a big sum … I am constantly amazed that buyers in that category don't baulk a bit more."

Both Ms Lees and Mr Dennes said they had seen no sign of a rush to beat the deadline.

"Anyone looking to buy has probably left it too late already to complete by April 6," said Mr Dennes. "Short of being very lucky or a massive push to get it done quickly it is not going to happen. They would really have to be under offer now and ready to exchange.

"And at over £1 million the extra duty is not going to change most people's decision. There will be a few doom and gloom merchants who say it will have an effect. But people buying at that level will continue to do so. They may grumble a bit but they will still go ahead."

Also, that sector of the market tended not to get moving until the spring anyway.

"The change is progressive and probably fairer."

For more information about Lodders, please visit their website here: www.lodders.co.uk