Young British house buyers and workers in key but lower-paid sectors such as nursing are to be helped getting into the pricey property market in a government initiative to be launched on Monday. The Labour party, which inherited a rising market when it came to power in 1997, has seen prices double in places, to take the market beyond the reach of many people, particularly in southern England.
"The only way you can help that is to have a more flexible way of acquiring equity in your home, to give special help to first time buyers and increase the housing supply," Prime Minister Tony Blair said on Monday.
The government's widely trailed plans will include allowing buyers without the necessary deposit or salary to support repayments on a large mortgage to have flexible ways of getting on the housing ladder.
Deputy Prime Minister John Prescott is due to lay out the details later on Monday.
Economists say British mortgage lending and approvals remain weak, with most of the latest evidence pointing to subdued activity and softer house prices due to higher interest rates.
The Bank of England raised the cost of borrowing five times between November 2003 and August 2004 by a total of 125 basis points to 4.75 percent.
Halifax, the country's largest mortgage lender, said this month the average price of a British home was 162,086 pounds.