First time buyers could be given access to mortgages through a new government-backed scheme.

The government is planning to introduce the scheme, under which a portion of some mortgages for first-time buyers of new houses will be guaranteed by the State, in order to enable banks give out more loans.

Mortgages worth up to 95% of the value of the home will be available to first time buyers, allowing them to buy houses with smaller deposits.

Similar schemes are already in place in Canada, Australia and Britain.

It is hoped the scheme will provide a much-needed boost to the construction sector, since there is a belief that a further increase in demand will drive supply.

Group Political Editor with the Irish Independent, Fionnán Sheahan, told Newstalk's Breakfast it's an attractive option for the banks because they can share the risk:

Separately, developers who are still sitting on land banks, waiting for its value to sufficiently improve before they begin developing it, will face new sanctions, which could include a vacant site tax.

Meanwhile, new figures from the Irish Banking Federation have revealed the number of mortgages issued in the first quarter of this year is up 65% on 2013.