THE Chancellor, Philip Hammond, says his flagship Budget tax cut to assist first-time buyers will help a million people get on the housing ladder.

Mr Hammond's stamp duty policy was part of a giveaway package which pumped an additional £25 billion into priorities such as housing, infrastructure and the NHS.

The Office for Budget Responsibility took the shine off the move by predicting it would push up prices by around 0.3% - meaning many first-time buyers would have to pay more than they otherwise would while the main gainers would be people who already owned a property.

It also suggested that only around 3,500 additional homes would be sold as a result of the incentive.

But Mr Hammond said: "Hopefully, by abolishing stamp duty, which will save the average first-time buyer about £1,700, that will be a help and an incentive to focus on getting the deposit together, getting the money together to get on the housing ladder, and we hope that many more young people will be able to get on the housing ladder."

The Chancellor told the BBC: "The important thing is that over the next five years, over the life of this parliament, a million first-time buyers will make an average saving of just under £1,700 when they buy their first home.

"I think that's a good news story."

Currently the threshold for stamp duty to kick in is £125,000. Under the new policy, first-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that.

The relief will apply if you, and anyone else you are buying with, is a first-time buyer. There will be no relief for those buying properties over £500,000.