Prospective first-time buyers struggling to get onto the property ladder could benefit from the government's re-launching of its low-cost shared-ownership scheme.

Under the Open Market HomeBuy scheme, the government will provide prospective buyers with an interest-free loan worth up to 17.5 per cent of the property they wish to purchase, with the first-time buyer taking a mortgage out on the remainder.

With the government confirming that it will provide up to £50,000, first-time buyers will therefore be able to purchase a property worth a maximum of £286,000, though the scheme is only available to household with an annual income of less than £60,000.

"This opens up the doors to a lot more people and lenders can be more generous with their lending criteria," Richard Stone, director of the mortgage brokers SPF Sherwins, told the Observer.

The developments come as a recent survey from the research firm LV found that 15 per cent of all young adults in the UK would be willing to take on a mortgage of four or more times their annual salary in order to get on to the property ladder.

In addition, 30 per cent of those questioned said that they would be happy to give up financial protection insurance if it meant that they could borrow more.