The government will abolish stamp duty on first time house purchases up to £300,000.
And people buying a home worth up to £500,000 will not have to pay stamp duty on the first £350,000.
Speaking in his Autumn Budget speech, chancellor Philip Hammond said the measure would affect 95% of all first time purchases in the UK.
Currently there are five stamp duty rate bands from 0% to 12% of the value of the property being purchased.
Hammond had been tipped to use the Budget to introduce a policy that would win favour with younger voters after the general election this year saw strengthening support for Labour from that demographic.
‘For all first-time buyer purchases up to 300k, I am abolishing stamp duty altogether,' said Hammond.
‘To ensure that this relief also helps first-time buyers in very high-priced areas like London, it will also be availailable on the first £300,000 on the purchase price of properties up to £500,000,’ he said.
‘Meaning an effective reduction of £5,000. ‘That is a stamp duty cut for 95% of all first-time buyers who pay stamp duty and no stamp duty at all for 80 pc of first time buyers from today.
‘When we say will revive the home owning dream in Britain we mean it,’ said.