First-time buyers are being advised to act fast if they want to have much hope of benefiting from the latest Government scheme designed to get many of them on to the housing ladder.

Launched by housing minister Grant Shapps, FirstBuy was announced in the March Budget, with £500m government backing.

It will enable people to buy homes on developments nominated for the scheme with deposits of only five per cent.

Another 20 per cent is provided by the government and selected builders, while the rest of the money is a 75 per cent mortgage.

The plan isn't entirely altruistic. FirstBuy is part of the government's wider economic strategy to boost growth by simultaneously stimulating housing demand, tackling supply-side barriers and supporting local priorities for housing supply.

It is seen as a way to preserve construction jobs until recovery lifts off.

The government's £500m is being shared between 100 builders who will offer the scheme across the country, meaning about 10,500 first-time buyers will take advantage of the scheme in the next couple of years.

Interest in the scheme has been intense. Barratt Developments - allocated £25 million of FirstBuy funds - already has 12,000 applicants pre-registered for the scheme.

Other builders involved include Persimmon, Bovis and Linden Homes, while Barclays, Halifax and Nationwide are among lenders providing mortgages. Applicants for FirstBuy can earn up to £60,000 a year.

Ian Baker, group managing director at Linden Homes, says: "The government has listened to the housebuilding industry by introducing this initiative and we welcome it.

"The scheme has allowed flexibility over the allocation of funding, which is arranged on a regional basis, and this will ensure funding is based on purchaser demand.

"Starter homes comprise eight per cent of the total homes Linden Homes anticipates to build by 2012, so our allocation is in proportion to our output. The funding will sustain housing supply, create jobs in construction and, crucially, help first-time buyers."

Applicants for FirstBuy should initially register their interest on builders' websites such as www.lindenhomes.co.uk

Some developers have yet to announce which developments have been nominated.