Average earnings by 2021 also look set to be nearly £1,400 lower than forecast in March 2016, the Institute for Fiscal Studies has warned.

The prime minister said she wants to "reignite the dream of home ownership" by abolishing stamp duty for first-time buyers.

The chancellor cut duty on homes sold up to £300,000 in his Wednesday Budget, a boon to young people hoping to get onto the property ladder.