Prime Minister David Cameron has promised first-time buyers under the age of 40 a 20 per cent discount on their first home if the Conservatives win the general election.
Kicking off the Conservative party conference in Birmingham on Saturday, Cameron unveiled plans to build up to 100,000 “starter” homes on brownfield sites.
Cameron told the Daily Mail that homes would be made cheaper by exempting them from certain taxes and green targets.
The homes would also be exempt from section 106 agreements that require builders to create a certain number of affordable homes or invest in local communities.
Buyers under the new scheme would still remain eligible for the Government’s Help to Buy scheme offering a 20 per cent interest-free loan for five years with a 5 per cent deposit.
Cameron said: “I don’t want to see young people locked out of home ownership. We’ve already started to tackle the problem with Help to Buy mortgages – and these new plans will help tens of thousands more people to buy their first home.”
Labour leader Ed Miliband has pledged to build 200,000 new homes a year by the end of the next parliament and made new homes a central feature of his pitch to voters next year.
Cameron also announced a £300m crackdown on welfare payments by capping the maximum benefits bill per individual at £23,000, down from £26,000 today.