Approximately 20,000 people have registered their interest in buying a new home from Barratt under a Government-backed scheme that gives homebuyers the chance to move in for only 70% of the purchase price.

The remarkable level of interest underlines the pent-up demand for homes from First Time Buyers who have been priced out of the housing market for years but can now take advantage of the most competitive prices in a generation.

Barratt has more than 3,000 homes across the country eligible for 'HomeBuy Direct' - an equity loan scheme in which the housebuilder and the Government, through the Homes and Communities Agency, provide up to a maximum of a 30% equity loan to the homebuyer. The buyer finances the remaining 70% either through a mortgage or a mortgage and a deposit.

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There is no interest to pay on the joint Barratt/Government equity stake for the first five years. A fee will be charged from year six onwards.

Barratt has been taking pre-registrations for 'HomeBuy Direct' for two months. In the last week the scheme has gone live, enabling people to make reservations.

Mark Clare, Chief Executive of Barratt Developments PLC, said: "The fact that 20,000 people have registered their interest in buying a Barratt home under 'HomeBuy Direct' shows that there are signs of life in the housing market."

(CD/JM)