High street banks and other lenders are taking part in a Treasury scheme to boost recovery from the pandemic.
Ministers say the move will help young families get on the housing ladder after years of facing unaffordable prices due to a squeeze on lending.
Housing Secretary Robert Jenrick said: “Together we can turn generation rent into generation buy.”
A survey commissioned by the Government today suggests a property market surge is looming as months of Covid lockdowns have increased the demand for home ownership.
Two-thirds of renters and nearly three-quarters of those living at home want to buy. Most say the pandemic has made them more aware of the benefits.
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