The new scheme will see the authority ‘top up’ the deposits of working people to bridge the gap between the cost of a typical 75% and 95% loan to value mortgage offered by banks and other lenders.
The council said there are currently up to 6,000 people in Essex who cannot afford to take out a mortgage to fund the purchase of their first home.
The council has also frozen council tax for the third consecutive year.
Councillor Peter Martin, leader of the council, said: “We believe that at a time when the people we represent face a real struggle to keep their heads above water that we must limit demands on household incomes."
