All three major political parties are targeting first-time buyers in the run up to the general election.

The Labour party has already announced plans to help first-time buyers and the Conservatives want to extend existing right-to-buy schemes, but now the Liberal Democrats have weighed in with a new housing policy, which aims to provide 100,000 affordable dwellings through a new Mutual Homes scheme.

All the main parties are focussing on the issue after a report from the Halifax bank suggested first-time buyers could not afford to buy a home in 92% of UK towns.

As part of an overall 'greener' housing policy the Liberal Democrat want to provide affordable housing by creating an intermediate housing market, investing in Mutual Homes, Shared Equity and Golden Share schemes. They plan to use publicly owned land for some 100,000 homes.

The Liberal Democrat plans also provide local authorities with more power to limit the growth of second homes, allow councils to vary right-to-buy discounts according to local needs, and encourage the re-use and conversion of existing buildings rather developing Greenfield sites.

Charles Kennedy MP, Leader of the Liberal Democrats said, "Our innovation is to create a completely new housing market to help people make the transition from renting to buying. Mutual homes will offer people the opportunity to build up an equity stake in a home gradually, investing only as much as they can afford."