George Osborne has said stamp duty will be cut for 98% of homebuyers in his Autumn Statement to the Commons.
The chancellor said that from midnight the current system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate, working in a similar way to income tax.
He admitted borrowing would be higher than forecast but claimed the UK would be \"into the black\" by 2019/20.
Labour said his deficit reduction targets were \"all in tatters\".
BBC political editor Nick Robinson said the headline announcements were \"real electioneering\" by the Conservative chancellor, saying the stamp duty proposals were the Tories' \"own version of the mansion tax\" proposed by Labour and the Lib Dems.
The Autumn Statement - which was called the pre-Budget report under the previous Labour government - is a chance to flag future tax and spending plans as well as set out the state of the nation's finances.