A new garden city will feature discounted homes for first-time buyers, who will pay at least 20% below the market value.

The Government has announced 30 local authorities which will spearhead the scheme on brownfiled land, paid for by its £1.2 billion Start Homes Land Fund.

Among the areas taking part is Ebbsfleet Development Corporation (EDC), the planning body for a 15,000-home town between Gravesend and Dartford.

Up to 645 starter homes could be built across the area for people aged between 23 and 40, with up to £31.6 million available for the garden city.

EDC interim chief executive Paul Spooner said it “will be targeting this additional resource on bringing forward new sites for development, working closely with our landowners and developers”.

The cash, which will help subsidise developers to build the cut-price homes, comes as confidence in the housing market has taken a hit.

Housebuilder Bovis Homes, based in New Ash Green, near Dartford, surprised investors as it warned last week the number of sales for 2016 will be lower than expected.

It said slower production in December had put back about 180 completions to the early part of this year but said the average price is likely to be up by about 10%.

It said total revenue is expected to be in the range of £1.04 billion and £1.06 billion, while pre-tax profits will come in between £160 million to £170 million, compared to £160.1 million in 2015.

The unscheduled stock market announcement came after it predicted record revenues back in November.

A number of families were forced to delay moving-in plans at its Orchard Fields site in Maidstone, after the developer was forced to delay completions at the 11th hour.

Kelly Terry and her husband, Scott, bought their off-plan home in April.

The 28-year-old teacher said: “We were told we were moving in on Wednesday and took time off work and ordered a van as we were doing it ourselves.

“At 8.30pm on Tuesday evening we were told we couldn’t move in. We had to spend the night in a hotel and were effectively homeless.”