Ahead of the Conservative party conference, Cameron promised to build 100,000 new homes to be sold at 20% below the market rate if his party wins the next general election.
The new phase of the Help to Buy scheme would be open to all first-time buyers under the age of 40 and would see homes built on brownfield sites across England.
The homes will be exempt from some taxes and some building rules in order to lower costs.
Cameron promised the properties could not be purchased by foreigners, buy-to-let landlords or those looking to flip the property.
“We want to help more young people achieve the dream of home ownership so today as part of our long-term economic plan I can pledge we will build 100,000 homes for young, first-time buyers,” he said.
“We will make these starter homes 20% cheaper by exempting them from a raft of taxes and by using brownfield land.
“I don’t want to see young people locked out of home ownership. We’ve already started to tackle the problem with Help to Buy mortgages – and these new plans will help tens of thousands more people to buy their first home.”
Figures released by the National Association of Estate Agents found the number of buyers between 18 and 30 remains at an all-time low. In August these buyers represented 3% of the market.
The number of first-time buyers was 28% up on the same month last year although estate agents surveyed said they expected the rise in interest rates to stifle demand. Some 39% said they had already seen first-time buyer demand drop off.
