The special tax on house purchases – overdrachtsbelasting or conveyancing tax – is to be reduced from 6% to 2% for a year in an effort to boost the housing market.

Ministers agreed to cut the tax at Friday’s cabinet meeting, the last before the summer recess. The tax cut will be backdated to June 15.

According to the Telegraaf, the measure will save home buyers €8,000 on the cost of a €200,000 house. The tax raises €3.5bn for the treasury every year.

Real estate agents have welcomed the move, saying it will help more first time buyers take a step on the housing ladder.