Housing spokesman Brian Cowen said buyers having difficulties would get €50 from the Government for every €200 saved for their deposits.

The scheme is likely to force other parties into launching pre-election pledges aimed at helping first-time buyers who are being forced out of the market by rising prices. The grants would cost the State €105m a year.

The proposal echoes the special saving incentive account (SSIA) introduced by Fianna Fail in 2001.

Announcing the party’s national housing roadmap, Mr Cowen said that, under the proposals, individuals would get €5,000 and couples could claim up to €10,000. This could help up to 80,000 families, he said.

Outlining other parts of the plan, he also said the party would build 2,000 reduced-price starter homes for first time buyers in Dublin. The party would also shake up the mortgage market by involving credit unions in lending.

Furthermore, the banks’ veto on debt deals would be removed.

A local authority tenant scheme would be introduced, it was announced, which would allow for discounts of up to 60% on properties.

Housing adaption grants would be reinstated, he said, which would help ensure the homes of the elderly are refurbished to accommodate them in their later years.

Finance spokesman Michael McGrath said the Government — despite having favourable conditions — had failed to secure the recovery for ordinary people.

There had been a favourable foreign exchange rate for exporters, the strength of the US and UK economies, the quantitative easing of central banks worldwide, and the drop in oil prices, he noted.

The Cork South Central TD said: “Despite all the Government spin, the truth is delegates that most ordinary people are not feeling a recovery. They want the recovery to be real and meaningful but they won’t really believe it until it makes their life a little easier.”

He also highlighted the highly criticised variable mortgage rates being applied by banks. “The interest rates being charged by banks in Ireland on 300,000 standard variable mortgages is a scandal and a rip-off, delegates, and it must not be tolerated,” said Mr McGrath.

Radical proposals to ease property tax payments for families and help some trade down their homes were also announced.

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