The coming end of the government's stamp duty holiday has resulted in a surge of interest from potential homeowners, estate agents have reported.

Countrywide Estate Agents, which has more than 1,000 branches across the UK and whose brands include Bairstow Eves and Mann & Co, said inquiries from potential buyers had gone up 69% when compared with figures from August 2008, adding that actual sales had risen by 53%.

While conceding that some of the increased interest may have been sparked by a sense that house prices may be on the up again, the company believes people looking for properties under the £175,000 stamp duty threshold have been given added incentive by the looming end of the holiday.

Analysts estimate that 60% of buyers currently purchase a house around this price range, but warn that those looking to take advantage of the deal should do so quickly as it can take up to three months from start to finish to buy a home.

The Government announced in September last year that it was increasing the threshold below which stamp duty is not charged from £125,000 to £175,000 for one year, later extending the exemption until the end of 2009.

Stamp duty is currently charged at 1% of a property's price on all homes worth up to £250,000 - meaning anyone who buys a £175,000 house after December 31 will receive a bill of £1,750.

Robert Scarff, managing director of Countrywide Estate Agents, said: "Thousands of buyers have already benefited from the stamp duty holiday and it has brought some much-needed relief for the property market - particularly for first-time buyers who underpin much of the market and stimulate house sales further up the chain.

"Buyer demand has increased over the last few months as house prices have begun to stabilise.

"However, lack of supply in key areas has already caused small house price increases in some areas where demand continues to outstrip supply."

Copyright © Press Association 2009