PRIME Minister David Cameron made a surprise visit to Dorset to announce plans nationwide to build 100,000 low-cost starter homes.

Setting out the battle lines for the forthcoming election, the premier unveiled a plan which he said could help younger households into home ownership.

The homes, designed to be low-cost but good quality, would be sold at a 20 per cent discount exclusively to first time buyers under 40.

Mr Cameron, whose visit to Poole was part hosted by the Dorset Chamber of Commerce and Industry, said the policy could help people in the county.

“We have to help and that’s why I think these starter homes can help,” the Prime Minister said.

“Obviously we need affordable homes for rent as well and more council homes have been built under this government in the last four-and-a-half years than in the previous 13 combined.

“But many people in Poole and Dorset, young people working, want to buy their homes.

"So I think they’ll welcome starter homes because this is bringing housing into a much more affordable way for people who have a job and can afford the mortgage payments.

“We’re helping them get that mortgage now with the Help To Buy scheme because they don’t need to get now the huge deposits that they did several years ago - and these starter homes will make the actual home you want to buy cheaper.”

The Prime Minister said 100,000 of the starter homes would be brought forward in the next parliament if the Conservatives won the general election.

Mr Cameron added: “Hard-working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.”

Labour’s shadow housing minister Emma Reynolds said yesterday that no one would believe Mr Cameron’s promises on home ownership.

Mr Cameron visited a housing development in Hamworthy to see where homes could be built as part of the new initiative he had announced.

Cameron also saluted the pupils and staff of Magna Academy which was part of his visit.

His visit was kept secret until the last minute, when a heavy police presence heralded the arrival of the Prime Minister yesterday lunchtime.