MARY Morton is right in stating that the abolition of stamp duty on house sales below £120,000 won't do anything to help first-time buyers.

But neither would raising the threshold even further, as she suggests (Letters, March 24).

The price of a "starter" home is determined by how much people are able to pay or borrow, not what proportion of the price is tax.

Abolishing stamp duty at a time when demand outstrips supply in the housing market will simply cause prices to rise to make up the difference.

Therefore the real beneficiaries of Mr Brown's largesse will be those who already own a relatively low-value home and are looking to trade up.

Since they will now pocket the entire proceeds of the sale, without any cut going to the Treasury, Mr.Brown is bribing this group of homeowners - who, surprise surprise, are likely to be the key swing voters in the forthcoming election.

Leo Enticknap,

Ingram House,

Bootham,

York.

Updated: 11:33 Tuesday, March 29, 2005