Rishi Sunak has announced he has decided to cut stamp duty for all purchases below £500,000.
The move has been made to help kickstart the housing market, and it is thought it will help nine in ten buyers - helping to save £4,500 on the average purchase.
The current stamp duty threshold is £125,000, but this has been increased to £500,000 until March 2021.
As part of his mini budget speech, Mr Sunak told the Commons: "Right now, there is no stamp duty on transactions below £125,000.
"Today, I am increasing the threshold to £500,000. This will be a temporary cut running until March 31 2021 – and, as is always the case, these changes to stamp duty will take effect immediately.
"The average stamp duty bill will fall by £4,500. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all."
As well as stamp duty, the Chancellor has announced plans to cut VAT on food, accommodation and attractions, reports PA.
Mr Sunak said VAT will be reduced from 20% to 5% from July 15 until January 12 to help, noting: "This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs."
