A BREAKTHROUGH for struggling first-time buyers was announced by government this week.

Deputy prime minister John Prescott outlined Labour's five-year action plan on Monday - which focuses on boosting the amount of affordable housing and home ownership across the country.

Called Homes for All, the plan aims to get 80,000 people owning their own home by 2010 and will include a first-time buyer's initiative, using publicly-owned land for new properties.

Changes to the current planning system will be phased in, ensuring more affordable housing is built in rural areas for low-income families and first-time buyers.

Mr Prescott said: "Tackling the nation's chronic housing needs and giving people more choice is not just about them gaining a roof over their head, it is about giving people a stronger financial future and ensuring greater social justice."

"We are delivering the most comprehensive, fair and flexible policies ever to deliver sustainable home ownership.

"It means more first-time buyers, more people in social housing and key workers like nurses and teachers being able to get on the housing ladder."

A new scheme, known as Homebuy, will also allow tenants of local authorities and housing associations to buy a stake in their home and proceeds from Homebuy sales will be re-invested in housing.

The current Right to Buy and Right to Acquire schemes will continue, along with plans to build 10,000 extra social homes by 2008, giving all social tenants and seven out of ten people in the private sector decent accommodation.

The news has been welcomed by the Housing Federation, which represents 1,400 housing associations in England.

Chief executive Jim Coulter said: "The voluntary shared- equity scheme will provide more choice for individuals and housing associations in broadening tenure and delivering sustainability."

Tackling homelessness by halving the number of people in temporary accommodation by 2010 and providing £5bn for housing-related support to help older, disabled and vulnerable people to live independently also feature high on the agenda.

In December last year, government ministers announced that the rural exceptions site policy, which allows councils to grant planning permission for affordable developments, would be kept.