Setting out further housing plans today, Miliband will promise all first-time buyers purchasing properties worth less than £300,000 will be exempt from the duty.

This would be a temporary measure and would last for the first three years of a Labour government. The party estimates it would cost around £225m.

At present all buyers currently pay no stamp duty on the first £125,000 of a sale price. For properties over this level they are taxed 2% on the next £125,000, 5% on the following £675,000, 10% on the next £575,000 and 12% on homes over £1.5m.

Miliband also wants as many as half of new build properties to be reserved for those already living in the local area. He will also repeat plans to boost house building across the country.

“There’s nothing more British than the dream of home ownership, and home ownership is out of reach for so many people in our country,” he is expected to say in a speech later.

“It’s the right thing to do to enable people to get back on the housing ladder and that’s what a Labour government will do.”

However, the Conservatives believe the policy has not been budgeted correctly and will cost upwards of £500m.

The Labour party had already re-announced plans on Sunday to introduce three-year tenancies as standard for those renting. It added that it would cap rent rises at the level of inflation for three years.

The Conservatives said this would “force up rents” and disrupt the rental market.

The Green party have already floated plans to make renting fairer for tenants while the Liberal Democrats would prefer to issue loans to cover the cost of rental deposits.