It was reported at the weekend by the BBC that 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, 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.

Unveiling the pledge - an extension of the Help to Buy mortgage scheme - Mr Cameron said the Conservatives wanted more young people to "achieve the dream" of owning their own home.

"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, 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 starter homes plan would apply only to England, whereas Help to Buy is UK-wide.

That scheme entails the government offering a 20% equity loan to buyers of new-build properties.