Multi-million pound boost will help buyers onto the housing ladder

First time buyers will benefit from a multi-million pound boost to help them onto the housing ladder, according to Housing Minister Mark Prisk.

The Minister announced the first allocations from a £280million pot to help a further 16,500 first time buyers benefit from the FirstBuy scheme.

Mr Prisk confirmed that £40million will go to 41 developers to help 2,500 first-time buyers this year - and called on them to go further, and bid for a share of £240million to help deliver thousands more new homes under the scheme next year.

The hugely popular FirstBuy scheme reduces the amount of deposit first-time buyers have to find by offering an equity loan of up to 20 per cent provided by the Government and developers.

The Minister said that the extension of FirstBuy would provide help to thousands more first time buyers across the country, offering an alternative to the Bank of Mum and Dad.

The scheme has already helped thousands of buyers across the country, with 3,000 sales made by March this year and developers reporting more than 8,000 FirstBuy reservations by the end of August.

The £280million boost to FirstBuy forms part of the Housing and Growth Package announced by the Prime Minister and Deputy Prime Minister in September, one of a range of measures designed to get Britain building and kickstart the economy.

This package builds on the suite of options available for aspiring homeowners who want to get onto and up the housing ladder. This includes the NewBuy Guarantee and the reinvigorated Right to Buy, which will give thousands of council tenants the opportunity to buy their home.

Mark Prisk said: "Firstbuy has already proved hugely successful, providing a practical alternative to the Bank of Mum and Dad for thousands of first-time buyers across the country.

"The scheme has become a major player in helping people onto the property ladder and getting Britain building again - and I'm determined to maintain that momentum.

"That's why today just a month after the Prime Minister confirmed this funding boost, I'm asking developers to start putting this money to good use - and giving them the chance to start planning for how they can help first-time buyers in the coming year."

Homes and Communities Agency chief executive Pat Ritchie welcomed the additional funding and said it will make a major difference to the lives of prospective homebuyers and keep momentum for affordable home ownership going, not only for this financial year but for the year after. "We are pleased to be able to allocate some of the funding for this financial year, and anticipate a strong bid response to the remaining £240million, and we look forward to working with our developer partners to bring these homes forward."