First-time buyers in England under the age of 40 could buy a house at 20% below the market rate if the Conservatives are re-elected, David Cameron has pledged. The Conservative leader said a future government led by him would build 100,000 new homes for such people.

They would be built on brownfield land already identified for development and exempt from some taxes, he said. Cameron said the Conservatives wanted more young people to ‘achieve the dream’ of owning their own home.

He added: “I want young people who work hard, who do the right thing, to be able to buy a home of their own. So these starter homes will be sold at 20% less than the market value. They can’t be bought by foreigners, they can’t be bought by buy-to-let landlords and they can’t be flipped round in a quick sale. They can only be bought by hard working people under the age of 40.”

The British Property Federation (BPF) has broadly welcomed the Conservative Party’s proposals to introduce affordable housing exemptions for developers in return for building cut-price homes for first time buyers. Liz Peace, chief executive, British Property Federation, said: “Given the extent of the UK’s housing crisis, any measure targeted towards to the increased provision of homes in the UK is to be welcomed.”