The Housing Minister will say in his speech that, without urgent help from banks, a generation of young people will be locked out of the market, reported the Daily Mail.
The answer, Shapps will suggest, is what he calls “mates mortgages”.
Shapps will say: “If there are mates who are perfectly capable of paying monthly mortgage payments, but are struggling to fund a deposit of their own, there should be straightforward options to unite with their friends and take the first step on to the housing ladder together.”
Currently, Britannia is the only lender that takes into account up to four incomes through its Share to Buy scheme. However, just 1,300 customers have signed up so far.
In addition, CML figures show that the number of young people able to buy their first home has slumped.
A decade ago, nearly 600,000 first-time buyers bought every year, but in 2010 the total had fallen to under 200,000.
Meanwhile, the average deposit put down by a first-time buyer has doubled from 10% before the credit crunch to 20% today.
