The proposed Choice-led Shared Ownership scheme would allow eligible first-time buyers to select any qualifying new-build home rather than being restricted to homes specifically designated for shared ownership.

Buyers would purchase at least 60% of the property using a conventional mortgage and pay rent of 3.5% on the remaining share, with the option to staircase up to full ownership.

But the funding model would also require house builders to contribute to the deal.

An illustrative £300,000 home assumes the developer takes a 10% – or £30,000 – discount, receiving £270,000 for the property. The buyer would fund a 60% first tranche, while institutional investment and National Housing Bank-backed finance would support the remaining equity.

Under financial modelling carried out by Newbridge Advisors, the Housing Bank would provide equity equal to 1% of the property value and guarantee a debt tranche worth another 10%.

Vistry argues the structure could bring pension fund and insurance capital into the market at scale.

Investors consulted for the report expressed interest in deploying more than £13.5bn over five years.

The house builder estimates the model could support 150,000 additional homes over five years – around 10% of the Government’s 1.5 million-home target.

It claims this could save up to £10.5bn in grant compared with delivering the same number of homes through conventional grant-funded shared ownership.

Vistry Partnerships & Regeneration chief executive Stephen Teagle said: “This report demonstrates that Choice-led Shared Ownership is implementable and scalable, offering a practical route to more accessibility and affordability for first-time buyers.

“This has been a collaborative effort, shaped by engagement with more than 35 organisations from across the housing, investment and public sectors. The level of support and constructive challenge we received demonstrates a shared appetite for innovative solutions that can help address the housing crisis.”

The proposals remain at development stage and depend on Government and National Housing Bank backing.

Vistry is calling for a sector taskforce to be established this year to agree the model, assemble a firm pipeline from housebuilders and work with investors ahead of a potential launch. The white paper also calls for changes to Stamp Duty rules to put the product on the same footing as traditional shared ownership.