Those who purchase a second home or a property to use for buy-to-let will have to pay an extra 3% in stamp duty, Chancellor George Osborne has announced.
The move, effective from next April, will raise £1bn by 2021, Osborne said.
The money will be used to help fund a doubling of the housing budget to £2bn, for building 400,000 new affordable homes to buy as well as rent.
From tonight the tenants of five housing associations will be able to exercise their right to buy.
A Help to Buy for shared ownership will relax the rules around shared ownership, allowing more people to use the scheme.
With a nod to spiralling London house prices, the Chancellor also announced a new London Help to Buy scheme to will allow people in the capital to get a loan to help buy a home.
Londoners with a 5% deposit will be able to get an interest-free loan worth up to 40% of the value of a newly-built home, according to the notes of Osborne's speech.
"We are the builders", Osborne said.
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