There are of course hidden costs for buyers on the scheme, such as a monthly investment charge and future stamp duty. Overall though, the move is welcomed by many in the industry.
On launch, the fund will look to sign-up first-time buyers in London and the South East of England. However, not everyone will qualify. Every customer will be credit checked and properties will be evaluated on a case-by-case basis.
David Toplas, CEO of Mill Group, said to FT.com: "We will be conducting our own research into the property to make sure it is likely to be a good investment, and evaluating whether it's likely to go up in value."
Another initiative to help those buying property is a fund that will let UK home buyers "top up" UK mortgages to meet up to 90 per cent of the property value.
The fund, from Assetz, is set to launch later this year.
FT.com explained that the scheme works "as borrowers get a mortgage of around 75 per cent loan to value from one of the fund's lending partners, with the fund financing the top slice up to 90 per cent. Borrowers will be offered a blended interest rate of around five per cent."
It is all good news for first-time buyers in England who may only have a small down payment.
Fund set to help first-time buyers (Financial Times)
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