Labour has said the scheme will be funded by within existing government budgets, but is yet to provide details of which other areas will see their spending cut.
Developers taking part in the scheme will also be asked to contribute towards running costs.
The Home Builders Federation, which represents developers, has welcomed the plans and urged the government to move quickly to set up the scheme.
The Conservatives have however branded the proposals a “colossal admission of failure” of Labour’s housebuilding record, and expressed concerns that the new developer levy could push up the price of new homes.
Like the Help to Buy scheme launched under the Conservative-Liberal Democrat coalition government, the scheme will use equity loans, which are linked to changes in the value of properties they are used to purchase.
That scheme, which initially ran between 2013 and 2021, enabled all home purchasers to put down a 5% deposit on a newly built home worth up to £600,000.
Up to 20% of the cost of the home was funded by a shared equity loan, which was interest-free for the first five years.
A second version of that scheme, which ran from 2021 to 2023, restricted access to first-time buyers and applied regional-level price caps to the properties could be bought under the programme.
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