Prime Minister David Cameron has said that a Conservative government would build 200,000 ‘starter homes’, available at a discount of up to 20 per cent.
Prospective first-time buyers under the age of 40 can already register their interest in buying one of 100,000 cut-price homes due to go on sale, all of which will be built on brownfield sites.
But the plans have been criticised by housing groups, who have questioned the way in which they will be funded.
According to the government, the cost of building will be offset by removing the obligation on developers to fund affordable housing developments and infrastructure for the developments.
The Chartered Institute of Housing said scrapping those obligations “set particular alarm bells ringing.”
The Institute said: “Social housing is critical if we are going to solve the housing crisis – there are always going to me people who can’t afford to buy and we must provide decent, affordable homes for them too.”
Announcing the scheme, Mr Cameron said there has been a “quiet crisis” in affordability. He continued: “The young people in their 20s and 30s still living with their parents, desperately saving for their own place. The couple who want a child but can’t afford to upsize, even though they have both got full-on, full-time jobs. It shouldn’t be this way.”