Councillors, MPs and residents had mixed reactions to the announcement to axe stamp duty for first-time buyers - with fears the move could inflate the market. 

During the budget speech yesterday, Chancellor Philip Hammond announced stamp duty will be abolished for first-time buyers on houses up to £300,000 and, in higher price areas, stamp duty would be axed on the first £300,000 of homes up to £500,000.

MP for South Dorset, Richard Drax said the cut would give a 'welcome boost to the sluggish market'.

Estate agents welcomed the announcement saying it would encourage more first-time buyers into the market. 

Simon Jeanes, sales manager at Austin Property Services estate agent in Weymouth said: "We are all very happy about it. Wages are low and property prices are high so it can offer some help to first time buyers."

Director of Dorset estate agent, Wilson Tominey, Robert Wilson said the move was a 'significant step'. 

"If you're a first time buyer you'll think 'I can't miss out on this, let's go for it,'" he said. 

However, residents hit back saying low wages and a lack of affordable housing meant young people would continue struggle. 

Emma Stoodley from Weymouth said: "Youngsters have no chance of getting a mortgage with the wages most of them are on - it's ridiculous. I have a 19,18 and 15-year-old and I know that they will have to move away."
Louise Downton from Dorchester said more was needed to help young people get initial mortgage deposits. 

Jenny Hyatt from Bridport said although the fees and deposit were difficult, lender restrictions were the most challenging part of getting her first home and there was a lack of lower priced housing in Dorset.

Councillor Gill Taylor, Weymouth and Portland Borough Council spokesman for housing said although she thought the tax cut was 'brilliant' she was concerned the move could inflate the market. 

Over the next five years, Mr Hammond pledged a total of £44 billion in capital funding, loans and guarantees to support the housing market and set out an annual target of 300,000 extra new homes to be built by the mid 2020s - a move Cllr Taylor said she was very excited about. 

The government also aims to speed up developments where planning permission has been granted. 

Member of Parliament for West Dorset, Sir Oliver Letwin will chair a committee to look into the unused 'land bank'. 

Mr Letwin said the committee would scrutinise why so much land with planning permission had yet to be built on it and what could be done to encourage developers to build faster.

He said: "There is a real problem where planning permission has been given, but where the homes have not yet been built. Getting to the bottom of why this is happening may help us to work out how to change that, and thereby enable us to provide more homes, more quickly for our young people."