An extra 80,000 starter homes for first-time buyers by 2010 are part of a package of measures under a new Homes For All plan unveiled by John Prescott.

The Deputy Prime Minister plans to help more people become homeowners by using publicly owned land for affordable homes. Prescott hopes 15,000 of the starter homes will be built for £60,000 or less.

Homes For All also sets out plans to build 10,000 social homes by 2008, which is a 50% increase on current build rates.

And 300,000 tenants of councils and housing associations will qualify for a new Homebuy scheme that will allow them to purchase 50% or more of the value of their homes. Tenants may benefit from a subsidy of up to £16,000.

Money earned by councils and housing associations from sales of equity under Homebuy will be earmarked for building new homes.

Sponsored