In a triumphant flourish which delighted Conservative MPs, he said it would help “make the dream of home ownership become a reality in this country once again”.
With immediate effect stamp duty is scrapped for first-time buyers purchasing homes worth up to £300,000.
To recognise sky-high costs in cities like London, the exemption also applies to the first £300,000 of the purchase price of properties of up to £500,000, potentially nearly halving their bills to around £5,500.
Overall the reform will reduce stamp duty for 95 per cent of first-time buyers and wipe it out altogether for 80 per cent. An estimated one million first-time buyers over the next five years will save an average £1,660.
It will save many the two per cent levy charged on the value of homes between £125,000 and £250,000, and the five per cent charged above that point.
It was the highlight of an ambitious package to tackle long-standing problems in the housing market.
Overall a total of at least £44billion – including an extra £15billion released yesterday – will be spent over the next five years on capital funding, loans and guarantees to boost housing supply and affordability.
The Chancellor told the House of Commons: “When we say we will revive the home-owning dream in Britain, we mean it.