Less than a third of homes will qualify under the Labour ’s new scheme to help first-time buyers get on the property market, research shows.

Under the Your First Home Scheme , the government has promised to provide an interest-free loan on new build homes for individuals or couples earning a combined income of £110,00 or less a year.

Buyers will face different property price caps depending on where they live, with a survey from SAM Conveyancing in The Times revealing that just 30 per cent of homes will be eligible.

The property company found that the cap was below the price of an average new build home in 264 of the 285 local authorities that it analysed, meaning less than half of homes were eligible.

In 97 local authorities, less than a quarter of homes would qualify, it said.

Andrew Boast, the chief executive of SAM Conveyancing, has called for the government to open up the scheme to all homes.

He said: “Limiting Your First Home to new builds was always going to restrict where first-time buyers could…