The threshold for paying stamp duty on property purchases will rise by £5,000 to £125,000, costing the government £40m in forgone tax this coming year.
No stamp duty if this costs less than £125,000
The move keeps the lowest rate of stamp duty at 1% - but covering properties worth between £125,000 and £250,000.
Sales worth less than £125,000 will not attract any stamp duty while the higher rate bands of stamp duty are unchanged.
The new threshold will come into force for property sales completed on or after 23 March.
The other rates and thresholds for stamp duty will stay unchanged for the coming financial year.
As well as the 1% band, a 3% tax is levied on properties worth between £250,000 and £500,000, and 4% on those sold for more than £500,000.
Thanks to rising property values since the mid-1990s, the tax has raised ever-increasing amounts of money for the Treasury.
Figures published last November showed that stamp duty raised £5.5bn in 2004-05.
The revenue beats that raised by duties paid on beer and spirits.
Accusations that stamp duty was imposing an unfair burden by default on ever-increasing numbers of house buyers helped trigger a rise in last year's Budget, when Mr Brown raised the lowest threshold from £60,000 to £120,000.
The latest increase will cost the government a modest amount, although the government's total take from stamp duty is affected not just by the prices paid for properties - but also by how many are sold.
According to the Red Book, which accompanies the Budget, the new measure will cost about £40m in the coming tax year and then £30m in each of the subsequent two years.