House builders are now able to bid for a share of the £150m the government has set aside for its First Home scheme by offering plots for sale.

The scheme will offer first-time buyers and key workers a discount of between 30% and 50% on new properties, with the first of these cheaper homes having hit the market in early June.

The government aims to see 1,500 new homes delivered by March 2023 through the project.

It says that housebuilders who win a contract with be able to work with local councils and mortgage providers to gauge likely buyer demand and the finer details of delivery.

Housing secretary Robert Jenrick says: “It is great to see the First Homes scheme gaining momentum and I am happy to invite house builders to deliver this flagship house building programme across the country.

“Lenders have already seen the first mortgage applications come in as more homes come onto the market. It will support local communities and give local people a greater chance of getting on the housing ladder and having a place which they can call their own.

“Just as importantly, homebuilders of all shapes and sizes will now be able to benefit from this scheme while helping FTBs and key workers onto the property ladder.”

And Homes England chair Peter Freeman adds: “The Early Delivery Programme is a great opportunity for housebuilders, housing associations and the wider development sector to get to grips with First Homes. We look forward to working with partners to help aspiring homeowners realise their ambitions and own their own home.

“Councils will also be able to prioritise the homes for keyworkers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.”s