Andy Burnham has announced a new scheme to try to help young people buy their first home, as the prime minister prepares to attend his first Labour Party conference as leader.

Arriving in Liverpool, Mr Burnham said he was concerned by the high number of young people who have given up on home ownership because of high living costs.

The Your First Home scheme is the first major announcement on the eve of the Labour Party conference.

Mr Burnham said: “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own.

“So we will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the bank of mum and dad.

“Your First Home will get them the keys to their own front door, and give builders the confidence to deliver the high-quality new homes the country needs. This Labour government is bringing back hope for people across the country.”

Funding for the Your First Home scheme will be drawn from reprioritised existing government spending. and buyers could secure a property with a deposit of just 2.5 per cent.

A government equity loan covering 20 per cent of the property's overall value will be provided to support the purchase and will be interest-free initially to maintain affordability.

With the average UK starter home costing £230,000 according to Rightmove, buyers could provide a £5,750 deposit and access up to £46,000 in loan support.

Full details on the policy, which is similar to the Help To Buy launched in 2013, will be presented by the Chancellor John Healey at the Budget on October 28.

Housing developers will also fund running costs, which ministers hope will give the industry confidence to construct new homes.

Housing secretary Angela Rayner stated: "We’ve seen too many people priced out and giving up on the dream of ever having a home to call their own. This scheme will make getting on the first rung of the property ladder just that bit easier and increase access to home ownership.”

Earlier on Saturday, Mr Burnham promised a “new direction” after a decade since Brexit, strongly hinting that he is willing to rethink the settlement with the EU. “We have had a decade since Brexit, and it has been a decade of too much drift and too much division. We need to draw a line on that,” Mr Burnham told supporters at the M&S Arena.

In another announcement on the eve of the conference, Labour revealed it was expanding its job guarantee scheme by giving young people on health benefits fast access to job opportunities in a bid to cut the welfare bill.

Through government funding, young people receiving health or disability support will be offered a guaranteed job three months after they start claiming benefits, down from 18 months.

On Sunday, chairman Bridget Phillipson, deputy leader Lucy Powell and deputy prime minister Louise Haigh will speak on the opening day of the party’s conference.