The proposed First Home Deposit Scheme announced in the 2016 Budget will assist people in low and middle-income groups to become first-time home buyers.

Kumpulan Bina Darulaman Bhd (BDB) Managing Director Datuk Izham Yusoff said paying deposit for a house was a hindrance and a recurring issue despite high demand for home ownership among locals.

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"The proposed scheme will not only help first-time homebuyers, but also will help ease their burden," he said in a statement here, today.

Prime Minister Datuk Seri Najib Razak proposed the First Home Deposit Scheme in the 2016 Budget on Friday that would assist home-buyers with an allocation of RM200 million.

Izham said BDB is working with Perbadanan PR1MA, Syarikat Perumahan Negara Bhd and the National Housing Department to develop existing lands with affordable housing projects.

BDB has identified suitable lands in Kulim, Pokok Sena, Kuala Ketil, Sungai Petani and Langkawi for real estate projects.

"This year, BDB has built 607 affordable homes in Bandar Darulaman, 309 units in Darulaman Perdana, Sungai Petani and 76 units in Darulaman Utama, Kuala Ketil," he said.

Izham said next year, the company's subsidiary, BDB Land Sdn Bhd, would build 1,067 affordable homes in the three areas involved to assist the Kedah government in its strive to have 40,000 affordable homes by 2018.

He also welcomed the proposed plan, announced in the 2016 Budget, to set up a special fund to encourage the use of Industrialised Building System as it would help save operating costs and cut down the construction period of residential and commercial buildings.