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Home insurance customers would be interested to know that the Federation of Master Builders (FMB) is against any VAT charges on new-builds, as proposed by the Liberal Democrats.

Brian Berry, director of external affairs at the FMB, said: "We have got house building at its lowest level since 1946 and the trends are that actually this year it could fall even further. So to actually put an extra tax on new-builds is at the wrong possible time."

Mr Berry added that first-time buyers would be the worst hit, because a rise in taxes and costs would be have to be borne by the purchaser.

By contrast, Home insurance customers selling houses under a Liberal Democrat government would be liable to pay VAT on new-builds.

However, the party's proposed policy of cutting VAT on repairs and maintenance has been well-received by interest groups, and undoubtedly homeowners too.

The Liberal Democrats, who are working towards launching a national programme to insulate homes across Britain and cut down on energy bills, have also proposed to help owners renovate empty properties and put them on the housing market.

In comparison, Labour has scrapped the stamp duty for first-time buyers buying property under £250,000 for two years, which is likely to leave more funds available for Home insurance costs.

They also propose putting the Financial Services Authority in-charge of all mortgages, providing homeowners with greater protection.

Besides continuing with their HomeBuy Direct Scheme, Labour would also launch a People's Bank at the Post Office.

Conversely, the Conservative Party wants to permanently raise the stamp duty limit for first-time buyers to £250,000.

In addition, the Tories seek to do away with the regional spatial strategies, building targets and home information packs which they believe have created problems in the housing sector.

Earlier this month, Ducalian head of consulting Timothy Lambert warned about the temptations of cheap variable mortgages. He advised homebuyers not to take on too much financial burden as the mortgage rates are bound to fluctuate in the future.

First-time buyer purchases in March dropped by one per cent to 23 per cent compared to the month before, according to data published by the National Association of Estate Agents.