First time buyers facing high house prices in rural Monmouthshire are being offered help with their purchase.

A new scheme, thought to be the first of its kind in Wales, gives buyers the chance to purchase their own home at half the asking price.

There is a major problem in our rural communities for local people who want to buy their own homes

David Benyon, Gwerin Housing

Under the Rural Homebuy initiative, Gwerin Housing Association, will take a 50% equity stake in the home, with the new owner paying the other half with a mortgage.

This means that for a �100,000 house, the first time buyer will only have to find half the cost.

If the property is then sold, 50% of the proceeds go back to the housing association.

The scheme is being offered to single people and families and those living in rural areas.

People who want to buy in the main towns - Abergavenny, Monmouth, Chepstow, Caldicot, and Usk - will not be eligible.

Low cost homes for rent are also being built

David Benyon, chief executive of Gwerin housing said: "There is a major problem in our rural communities for local people who want to buy their own homes near their jobs or perhaps where they grow up.

"The prices of these properties are often way beyond their reach and matters have become considerably worse with spiralling values in the current housing market.

"Our overall aim in Gwerin is to provide affordable housing and therefore, we are offering support in rural areas to enable those living and working locally to buy their own homes," he said.

The �750,000 Monmouthshire scheme has had funding from the Welsh Assembly.

More than 20 owner-occupied homes should benefit from Rural Housebuy.

Low cost homes

The Monmouthshire based housing association is also planning to build low cost homes for rent in rural areas.

Farmland sites are being looked at for development and plans have been submitted for houses and flats in village land.

"Where you want to either buy or rent your own home in a rural area, you can face serious problems if you are on a low income," said Mr Benyon.

"We fully understand these problems and we are anxious to help," he added.