Housing Minister Grant Shapps has launched the new FirstBuy scheme, designed to help those struggling to buy their first home due to the need for large deposits.
Shapps said more than 100 housebuilders will take part by offering their new-build homes to first-time buyers.
Through FirstBuy, the Government and housebuilders together will offer a 20% equity loan, which alongside a 5% deposit from the buyer will enable them to take out a 75% mortgage on the rest of the property.
Loans will be repaid on resale of the property, with the government’s share available for reinvestment in more affordable housing.
Shapps says FirstBuy will help over 10,000 first time buyers in England over the next two years, with up to £500 million being available across the UK.
And because the scheme is only available on new-build properties, it will offer a much-needed shot in the arm to the housing market and the construction industry – supporting thousands of jobs.
Lender backers include Halifax Nationwide Barclays and the Melton Mowbray Building Society.
Shapps said: “With 80% of young first-time buyers depending on parental help