The Budget was a 'missed opportunity' for the property market, with the Chancellor failing to announce some much sought-after 'game-changers', industry experts have said.
Jeremy Hunt made several property-related announcements in the Budget, including 8,000 new homes to be built in London's Barking Riverside and Canary Wharf.
He also announced a tax crackdown on holiday lets and a cut in the rate of capital gains tax for buy-to-lets and second homes, as well as saying that multiple dwelling relief was for the chop.
Paresh Raja, of specialist lender Market Financial Solutions, said: 'Ultimately, after two years of rising interest rates, this Budget would have been an opportune moment to bring about a string of policies and reforms to boost the property market. It feels like a missed opportunity.'
And Lucian Cook, of estate agents Savills, added: 'There was relatively little in the Budget for first-time buyers with nothing substantial on house building, beyond 8,000 homes in East London.
He said the Chancellor's reforms of stamp duty and capital gains tax relief may 'reduce a bit of competition' for existing housing stock from investors, but added that the measures were 'not game changers' for the housing market.
Paula Higgins, of HomeOwners Alliance, described the announcement to build 8,000 new houses in East London as a move that 'doesn't scratch the surface'.
This is despite the Chancellor insisting in his Budget speech that the Government is 'on track' to deliver more than one million homes in this parliament.
The problem for many buyers remains affordability, with high house prices and mortgage rates remaining a significant barrier to moving up, or even stepping onto, the property ladder.
The average price of a property sold in Britain during the past 12 months was £336,469, according to Zoopla.
And the 8,000 new homes are hardly in what would be widely considered 'affordable' areas, with the average price of a home sold in Canary Wharf during the past year at a significantly higher £562,224.
eremy Raj, of solicitors Irwin Mitchell, said: 'With housing starts in the doldrums and rents, mortgages and residential properties as unaffordable as ever, it was striking to note how little of the Budget speech related to housing and planning.
'It's hard not to conclude that the Government now feels that issues within the residential property market will not be a favoured battle ground for them in the coming General Election, other than sloganeering about the green belt and commonhold.
'Several kites were flown in the run-up to the Budget, but the reality was a distinct lack of innovation or creative thinking in relation to issues such as downsizing, property taxes or improving the environmental quality of our housing stock.
'The abolition of multiple dwelling relief and capital gains tax tinkering may have grabbed the attention, but hard-working conveyancers will be breathing a sigh of relief that the now almost-traditional scramble to work a new stamp duty regime into all their current transactions has been largely avoided.
'Their clients, however, will still be wondering how to house themselves and their families in an acceptable and affordable way.'
Cut in capital gains tax
The Chancellor announced that the higher rate of capital gains tax on the sale of residential property will be reduced from from 28 per cent to 24 per cent next month.
Experts pointed out that while the cut would raise revenue for the Chancellor through more transactions, the measure could end up hurting tenants.
Faye Church, of Investec Wealth & Investment, said: 'Capital gains tax arising from residential property is set at a higher rate that gains on other assets.
'However, the Chancellor states that if this rate were reduced it would in fact increase revenue through more transactions.'
'We want action now to increase the supply of much-needed rental property. There seems to be a lack of practical measures which will not take years to come to fruition
Isobel Thomson, of Safeagent, the not-for-profit accreditation scheme for lettings and management agents, went on to explain: 'The Chancellor suggested that the reduction of the higher rate of capital gains tax on property sales from 28 to 24 per cent would increase revenue for the Treasury as it would encourage more transactions.
'But if more landlords are persuaded to leave the sector, there is a risk that this could push up rents further, making it even more difficult for hard-pressed tenants.
'We want action now to increase the supply of much-needed rental property. There seems to be a lack of practical measures which will not take years to come to fruition, such as a plan to bring some of the many empty homes back into use.'
Stamp duty reform
Housing experts said there was also a missed opportunity to reform stamp duty, which can add significant costs to the expense of moving.
Tomer Aboody, director of property lender MT Finance, said: 'Persuading more landlords to sell up by reducing the CGT they pay could be detrimental to the number of available rental properties, leading to higher rents for tenants.
'While this would further encourage would-be buyers to get onto the housing ladder rather than renting, some assistance is needed to make buying more affordable.
The obvious answer is some form of stamp duty reform, which enables buyers to put down bigger deposits, and the Government missed an opportunity here.'
Downsizers and 99% mortgages
Pre-Budget speculation of 99 per cent mortgages and stamp duty cuts for downsizers failed to come to fruition in the Chancellor's speech.
Nick Sanderson, of retirement property firm the Audley Group, said: 'The focus shouldn't only be on building more homes for first-time buyers. It's about building the right types of homes.
'The Government must look at how the property market functions as a whole. Instead of continuing its blinkered focus on first time buyers and young families, it has to look at increasing the supply of age-specific housing.
'This would encourage older homeowners to move out of large family homes, freeing up supply and creating movement up and down the ladder. The benefits of this are numerous.
'Any new development should include provision for age-specific housing.'
Holiday lets tax clampdown
The Chancellor announced that tax relief for furnished holiday lets will be scrapped to help improve the availability of long-term rentals.
The move was widely anticipated as a way of bringing the tax regime of shorter term lets more in line with longer term rentals.
However, Ben Edgar Spier, of Sykes Holiday Cottages, said: 'Holiday let owners have been unfairly scapegoated in the guise of controlling rising house prices and availability.
'Short-term rentals truly are the economic lifeblood of many parts of the UK, driving spending, providing direct employment and supporting local businesses alike.
'It's therefore illogical to penalise these short-term let businesses over those with empty second homes - which contribute nothing to local economies - when you consider these benefits.
No major changes
Overall, the Chancellor was heavily criticised for failing to make any major changes to the property market.
Tim Bannister, of Rightmove, said: 'We had hoped the Government would seize the opportunity to help first-time buyers and reform the outdated stamp duty system today, instead, home-movers are left with very little.'
Meanwhile, Nick Leeming, of estate agents Jackson-Stops, said: 'Many of us were rightly hopeful of a clear priority plan on property from the Chancellor today. Yet with nothing to lose, and a statement of over an hour, it seems Hunt has gone for a rabbit in headlights approach on housing with major changes to property taxation avoided.
'For many voters ready to hit the polls in a matter of months, the decision to not address supply issues that have been slowing down homeownership for huge swathes of the country for a number of years, could be a defining moment for the current Government.'
Irwin Mitchell's Raj concluded: 'In his attempts to woo voters before the upcoming election, the Chancellor missed a trick by not bringing forward more meaningful, positive policies for the property market.'