The Conservatives have promised a lifetime deposit scheme for renters and more relaxed mortgage lending if they win the election.

The Tories haven’t yet published their manifesto but yesterday set out parts of their housing policy.

They will back the creation of Lifetime Rental Deposits that could be transferred between homes.

Prime Minister Boris Johnson pledged to create a new market for long–term and high loan-to-value 25-year mortgages that would be backed by institutions such as pension funds.

The idea behind these ‘lifetime’ fixed rates is that borrowers would put down just a 5% deposit and then repay the same amount over the term of the deal.

Long-term fixed rates were proposed by the Labour government under Tony Blair and lenders such as Nationwide offered products, but they proved unpopular as borrowers are locked into a deal that may prove expensive if interest rates and pricing later fall and they face high penalties if they want to leave.

Housing Secretary Robert Jenrick also said a Conservative government would provide a 30% discount for local first-time buyers on new-builds and would end no-fault evictions.

The Residential Landlords Association welcomed the idea of lifetime deposits, arguing it would make renting cheaper for tenants,

However Franz Doerr, chief executive of deposit replacement scheme flatfair, criticised the idea.

Doerr said: “The idea of deposit passporting between tenancies has been around for a long time, and while it is great in principle, in practice it is fundamentally flawed.

“For one, tenants still need to secure a large lump sum when they start renting and therefore raising affordability issues for many.

“Landlords are also not properly protected by the system between tenancies, especially in cases where deductions are required or where there is a higher rent to be paid at the next property.

“The next government should double down on supporting existing solutions that are harnessing tech to transform renting and real estate more broadly in order to make the experience more transparent and seamless, as well as encouraging greater trust between the parties.”