The Liberal Democrats have set out plans to reform stamp duty.

Currently purchasers must pay the tax if they buy a home for £60,000 or more but the Lib Dems have pledged to increase that threshold to £150,000.

Vincent Cable, the party's Treasury spokesman, said: "First time buyers are being squeezed out of the housing market not only by higher house prices but also by being swept into the stamp duty net.

"By failing to uprate the stamp duty threshold Gordon Brown has hit first time buyers and those on low incomes the hardest."