A government-backed mortgage indemnity guarantee scheme could see 100,000 extra new home sales, with positive implications for installers.
The NewBuy scheme was launched by prime minister David Cameron. Barclays, NatWest and Nationwide will offer 95 per cent mortgages on new homes built by Barratt, Bellway, Bovis, Persimmon, Redrow and Taylor Wimpey.
The 95 per cent mortgages on new Linden homes will be available only from NatWest.
Crest Nicholson is expected to join, but it is not yet clear if further major lenders will sign up.
Some 50,000 construction jobs are expected to be created.
Mr Cameron said: “It’s no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital.”
The government has also announced details of plans to reinvigorate the Right to Buy scheme for council properties, increasing discounts up to £75,000 and guaranteeing that additional properties sold are replaced with new affordable homes.
Housing minister Grant Shapps said the government was “determined to maintain the number of affordable homes for rent” and pledged to get “the nation building again”.
Industry groups welcomed the news, having lobbied for government action on mortgages.
HomeBuilders Federation executive chairman Stewart Baseley said: “NewBuy will help thousands of people, freeing up the housing market and helping first-time buyers and those unable to take the next step on the ladder.”
The country’s biggest housebuilder, Barratt Developments, said the scheme had already attracted “huge interest” from potential buyers.