Labour offers 100,000 discounted homes for first-time buyers in a giveaway aimed at tackling the housing crisis

Mark Sands
Follow Mark
House Prices Widen The North-South Divide
The UK will head to the polls on 8 June. (Source: Getty)

Labour is to offer first-time buyers as many as 100,000 discounted homes in a programme designed to focus housing support on those trying to get on the property ladder.

Launching a "new deal on housing" today, Labour has said it will also make sure that existing programmes, such as Help To Buy, are focused on first-time buyers.

The price of "FirstBuy" homes would be capped in line with average earnings across the country with local buyers offered "first dibs" on properties.

Local authorities will set the price ceilings of the new homes, with a target of keeping average mortgage payments below a third of average household incomes.

Labour said the scheme would be backed by the "National Transformation Fund" which it will support with government borrowing.

Shadow housing minister John Healey said: “After seven years of failure, a Labour government will shift the housing market decisively towards first-time buyers on ordinary incomes.”

Read More: What's the Conservative plan for solving the UK housing crisis?

However, Tories have branded the offer "reckless" and "unfunded".

Northern powerhouse minister Andrew Percy said: “This is just another unfunded promise Jeremy Corbyn can’t deliver.

“Last time Labour crashed the economy, housebuilding fell to its lowest peacetime level since the 1920s – and with Jeremy Corbyn in charge of the Brexit negotiations and John McDonnell in charge of the economy you’d see the same all over again."

Related articles