Gordon Brown's plans include the provision of "free" loans for low earners, in order to help them on to the property ladder.
Ministers are to announce new plans to boost the mortgage market today.
Under the terms of the policy announcement, first-time buyer households who take home less than £60,000 a year are to be offered "free" loans worth up to 30 percent of their home's value by the government. It is hoped that this move will stimulate interest in the housing market, which has suffered markedly since the onset of the credit crunch.
Gordon Brown's new policy statement also comes in the wake of bleak new mortgage approvals figures from the Bank of England, which showed that the number of home loans taken out in July was 71 percent below that of 12 months before. Falling house prices, the recent constriction in the mortgage market and consumers' budgetary constraints due to rising inflation are all thought to have contributed to this slumping demand.
While specific details of the government's "free" loans deal have yet to be released, it is thought that the loan period will be set at five years, with homeowners to pay an as-yet-unspecified fee for borrowing it at the end of this term.
In a statement, the Department for Communities and Local Government said: "Not only will this [scheme] help first-time buyers, but it will also support the industry by identifying buyers for their new homes.
"This will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term."
The government is also thought to be planning a £1 billion scheme to buy and build extra cheap social housing.
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