Speaking in Teeside, Miliband will say the move will see 90% of first-time buyers saving up to £5,000.

Buyers currently pay nothing on the first £125,000 of a home's value and are then charged on a sliding scale, starting with 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.

Labour says the estimated £225m cost of the stamp duty abolition scheme, which will be in place for the first three years of a Labour government, will be fully funded by tackling tax avoidance by landlords, increasing tax paid by holding companies that buy UK property on behalf of investors and by cutting the tax relief for landlords who fail to maintain their properties.

The initiative forms part of Labour’s plans to make home ownership easier for young people who are currently shut out of the housing market. 

The proposals also include First Call, a policy that will give first-time buyers the first choice of up to half of the homes being built in their area, if they can show they have been resident in the area for a minimum of three years.

In addition, Labour has signalled it intends to introduce another policy, Local First, to prevent foreign buyers from buying properties before local buyers have had the opportunity. This would be done by ensuring properties are advertised locally and by increasing taxes paid by foreign investors and council tax for empty homes.

In support of the proposals Ed Balls, the shadow chancellor, will say: ‘Our fully funded plan will slash stamp duty to zero for first-time buyers on properties up to £300,000.

‘This will save money that can instead be put towards a deposit and all the other costs that mount up when you buy a home. And we’ll get more affordable homes built too, with the biggest housebuilding programme in a generation.’