Government has opened up a pot of £150m to allow housebuilders to build First Homes, the scheme aimed at first time buyers and key workers.

The aim is to deliver 1,500 homes of the tenure by March 2023.

First Homes “helps local first-time buyers and key workers onto the property ladder by offering homes at a discount of at least 30% compared to the market price” the government says.

The same percentage will then be passed on with the sale of the property to future first-time buyers.

Housing Secretary, Robert Jenrick, said: “It is great to see the First Homes scheme gaining momentum and I am happy to invite house builders to deliver this flagship house building programme across the country.

“Lenders have already seen the first mortgage applications come in as more homes come onto the market. It will support local communities and give local people a greater chance of getting on the housing ladder and having a place which they can call their own.

“Just as importantly, homebuilders of all shapes and sizes will now be able to benefit from this scheme while helping first-time buyers and key workers onto the property ladder.”

Peter Freeman, Chair of Homes England said: “The Early Delivery Programme is a great opportunity for housebuilders, housing associations and the wider development sector to get to grips with First Homes. We look forward to working with partners to help aspiring homeowners realise their ambitions and own their own home.

“Councils will also be able to prioritise the homes for keyworkers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.”