A new package of measures intended to help first-time buyers has been announced by the Government. Included will be loans co-financed by the government and large developers that cover 30% of the cost of a home.

The Department for Communities and Local Government (DCLG) announced the new measures hoping to boost the ailing housing market by allowing first-time buyers unable to get on the housing ladder.

The scheme, called HomeBuy Direct, will offer “free” loans for 5 years, with a currently unknown fee payable after five years. According the the DCLG "hundreds of millions of pounds" have been set aside for this scheme. A spokesman for the DCLG made clear that:

"Not only will this help first-time buyers, but it will also support the industry by identifying buyers for their new homes. This will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term."

These measures come in the wake of a Bank of England report showing the number of home loans down 75% in the last year.