As anticipated, Chancellor Alistair Darling has doubled the limit for stamp duty for first-time buyers from £125,000 to £250,000.
The cut will be a holiday for this year and next, after which the tax will return. It also applies soley to first-time buyers.
It will be paid for by a hike in stamp duty to 5% for properties worth more than a million pounds.
Grant Shapps, Conservative shadow housing minister said: “We proposed abolishing First Time Buyer stamp duty in 2007. By now 150,000 families would have benefited if (the Government) had not waited.