Beckett also announced that more than 130 developers have agreed to take part in the scheme whereby households with incomes below £60,000 will be able to buy a new home with the help of a shared equity loan. The loan will be partly funded by the government and the developer and will be free of charge for five years. First-time buyers can use it as a deposit and it can cover up to 30 per cent of the purchase price.
Those eligible for the scheme will be able to apply for it from early 2009.
But the Royal Institution of Chartered Surveyors (Rics) has warned that the scheme will only work if lenders agree to give mortgages to those applying for the scheme.
