Tens of thousands of young people will get their first step on the housing ladder under a mortgage scheme due to be announced in the budget this week.
Buyers will be able to obtain a mortgage with a deposit of only 5 per cent of the value of a property under the plan to turn "generation rent" into "generation buy".
The Treasury will guarantee part of the loan to encourage banks to offer riskier mortgages on properties worth up to £600,000.
Rishi Sunak, the chancellor, will outline the scheme in the budget on Wednesday. He said: "Owning a home ia a dream for millions and we want to help as many people as possible".