Government plans to sell new build homes at 30% discount, as part of the new First Home initiative, has been welcomed by Propertymark.

Ringfenced for first-time buyers, the 30% discount will exist in perpetuity meaning a helping hand for generations of first-time buyers.

The market price will be capped at £250,000, although a higher level of £420,000 is set in greater London, reflecting higher property prices.

To qualify for the scheme, first-time buyers’ household income must not exceed £80,000 (£90,000 greater London).

Local authorities can ringfence houses for key workers and are encouraged to reserve for those with local connection

Propertymark CEO Nathan Emerson said: “First Homes is a creative initiative and one that can really work because you are not just introducing more buyers, you are also giving them a home to buy. That is key because we have a very busy market right now, full of hungry buyers, and there is a danger that introducing more buyers without increasing supply could further push the supply and demand out of balance, meaning house prices would continue to rise.

“It’s clear that the UK government recognise the importance of homeownership, looking forward we want to see a further expansion of measures to support the market as a whole.

“Coupled with planning reforms to make building easier and create more homes, the UK government should now look to incorporate initiatives to encourage and support older generations to downsize and release family homes.”