The Conservatives have promised to raise the stamp duty threshold to 250,000 if elected.
The party said the move would exempt the vast majority of first time buyers from the duty. It is the third and final pledge in the party's 4bn package of tax cuts to be introduced in a first Conservative budget.
Eighty per cent of house purchases would attract no stamp duty at all, the party said.
Tory leader Michael Howard said the move would help young people to get onto the property ladder.
"And it will make it easier for young couples starting a family to buy a bigger home. Six years ago, you paid 900 on the average house in England and Wales. Under Mr Blair, it's risen to 1,800. With a Conservative government, it will be zero," he said.
The Chancellor announced an increase in the threshold for resident...