But, they say, they may have less effect in this district than elsewhere.

The government's decision to stop the tax on properties costing less than £175,000 was announced this week.

Ministers hope a year-long holiday from the fee, one per cent of a property's value, will enable more people to get onto the property ladder.

The move is likely to cost the Treasury £600m and the government estimates half of all property transactions will now be exempt from stamp.

Terry Davidson, of Leamington estate agent Loveitts, believes the next 12 months without the tax, previously paid on homes costing more than £125,000, will improve the situation for buyers.

He said: "What we have been lacking in the last few months is first-time buyers who have lost faith in the market.

"This shows them the government is taking steps repair the market and should encourage them to buy.

"However, last year it was estimated the average cost of a detached home in Leamington was £269,000, so I think the £250,000 stamp duty barrier should have at least been raised as it is something we have been battling with for many years.

"Because of higher house prices here, the change may not help as many people. I think there should be a sliding scale for stamp duty and each town should be considered on the average price."

Fellow estate agent Brian Holt agreed the threshold should have been raised to £250,000 to help people buying homes in Leamington, Warwick and Kenilworth.

He said: "Although the government could have gone much further and made more than what could be regarded as a token gesture, I think this action should go a little way towards freeing up the current impasse."

Mr Holt, whose company has offices in Leamington, Earlsdon, Coventry and Kenilworth, added: "This will particularly help people in Coventry and Earlsdon, where there are reasonable number of homes available up to this price.

"But for those house hunting in South Warwickshire a £250,000 limit would have been needed to make a difference."

Members of the Royal Institution of Chartered Surveyors are also hoping the change will encourage more people to become home owners.

Spokesman Richard Franklin said: "A one year stamp duty holiday could provide some much needed relief for first-time buyers currently struggling in the current market.

"In the West Midlands where the average first time buyer pays £128,500 and the average price for all dwellings is £174,000, the stamp duty holiday will have more of an impact.

"But there will be large pockets of the region such as the rural shires and more expensive areas where first time buyers will not see any benefit from this holiday and will continue to struggle."