Councils are going to be able to help first time house buyers with their deposit. The new scheme which is being introduced will see councils pay up to 20% of the security.

Lloyds TSB has been signed up to the new plan which will be trialled in Blackpool, Warrington, Northumberland, Newcastle under Lyme and East Lothian.

Cecilie Booth, director at Sector Treasury Services, said: “The combination of relatively high house prices and understandable caution over lending from banks and building societies means that many potential first-time buyers are unable to save a sufficient deposit, even though they could afford mortgage repayments on a typical first home.”