A HOUSING association has announced plans to build 500 new low cost homes across Essex as soaring property prices leave first time buyers struggling to get on the ladder.

Sites for the affordable homes are yet to be finalised, but the Sanctuary Group told the Echo Southend, Rochford and Basildon have all been earmarked.

More than 200 of the properties will be developed for shared ownership, offering struggling first time buyers the chance to purchase a share of between 25 per cent and 75 per cent. The remaining homes will be rented out or sold.

Jenny Webster, 24, from, Southend, welcomed the announcement - but called for more low cost homes to cope with demand.

She said: “It is almost impossible these days to buy a house, especially for younger people.

“It doesn’t seem to matter how early you start saving, the prospect of owning a home always seems far off. There really is no way to buy a property without some help, and not everyone has families that can help out with deposits.

“Schemes like shared ownership help because it usually means the deposit is much less than typical, and helps people like me buy property where I have grown up.”

The Sanctuary Group was awarded £90million by the Homes and Communities Agency to build 2,265 affordable homes across England over the next five years - with nearly a quarter coming to Essex.

Ian Ward, councillor responsible for planning in Rochford, said low cost homes are needed in the county more than ever before.

He said: “In the Rochford District, 57 per cent of first time buyers cannot afford a flat or maisonette based on a mortgage at three times their income, and this has a direct affect on our sons, daughters and grandchildren as they start out in life. Therefore, affordable housing delivery is critical as it will benefit local communities who may find it difficult to afford market housing.”

Last summer, property website Zoopla revealed Southend house prices had increased by six per cent in just a year.

At the end of 2016, commuter towns including Basildon saw house prices soar by nearly 20 per cent.

Grant funding from the Homes and Communities Agency (HCA), through its Shared Ownership and Affordable Homes Programme 2016 to 2021, will contribute towards the cost of nearly 170 of the shared ownership homes.

Sanctuary has received nearly £90 million of funding from the HCA to develop 2,265 affordable homes across England over the next five years.

The funding was the largest grant allocation from the HCA under its £1.28 billion programme to support the building of 46,534 new affordable homes.

Peter Martin, Sanctuary Group Director – Development, said: “We are delighted to be developing these much needed new homes in Essex.

“Our work in the area forms part of our wider national development plans to build 30,000 homes in England and Scotland by 2026 and help increase housing across the country.”

Sanctuary will use the HCA funding, combined with the Group’s considerable investment, to build a range of new homes.

As well as providing new housing, construction of the properties will help create numerous employment and training opportunities.

Although no start date has been agreed, it is expected that the new homes will be built in the next five years,