House builders are lobbying the government to set up a tax-free savings scheme for first-time buyers as a way of improving liquidity in the beleaguered mortgage markets.

David Pretty, the chairman of trade body the New Homes Marketing Board, urged Chancellor Alistair Darling to introduce a national Home Deposit Savings Scheme offering tax breaks worth up to £5,000 to help buyers afford the rising costs of housing deposits as credit conditions tighten.

Daily Telegraph