Housebuilders propose tax-free savings scheme for buyers

Housebuilders have urged the government to introduce a tax-free savings scheme for first-time buyers.

The New Homes Marketing Board has written to Chancellor Alistair Darling urging the development of a national home deposit savings scheme with £5,000 tax breaks.

Savers would be given up to five years to save around £20,000, which would attract a 25% payment from the government, according to the Daily Telegraph.

The idea was first floated by the National House-Building Council.