A £400 million initiative to give tenants a "springboard" from which they can buy a newly-built home has been launched by the Government.

The Rent to Buy scheme will allow housing associations and other providers to bid for a share of £400 million in low-cost loans to build up to 10,000 new homes across England from 2015 to 2018.

The properties will mainly be made up of one and two-bedroom apartments.

Landlords must then make the homes available for rent at below-market rates for at least seven years, during which time tenants will have the opportunity to save up for a deposit to buy their own home.

At the end of the period, the tenant will have first refusal to buy the property, or they can choose to move out and buy somewhere else, or rent another property either privately or with the housing association.

If the home is sold, the housing association will then have the option to use any returns on their investment to build even more affordable homes in the area. Alternatively, they will still have a home, which they can look to rent at an affordable rate to another tenant.

Housing associations will have up to 16 years to pay back the low-cost loans. Until the loans are repaid, the homes must be made available for affordable rent. The housing association will only be able to sell or rent the home out at a market rate when the loan has been paid off.

Launching the initiative, Communities Secretary Eric Pickles said: "This new scheme will help increase the provision of low-cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line."

The programme is part of a broader £23 billion Government affordable housing programme for 2015 to 2018.