George Osborne has announced details of an extension to his mortgage guarantee scheme to help people buy existing homes, pledging that the plans "will boost housebuilding." But industry representatives have warned about the dangers of the policy.
Mortgage lenders say they still don't have all the details they need to participate in the Government's new housing scheme.
The Council of Mortgage Lenders said the Help to Buy mortgage guarantee scheme, which is due to launch in January, must have a "clear exit strategy" and not create a housing bubble.
"Lenders, whether they choose to participate in the guarantee scheme or stay outside, will continue to do their utmost to meet households' needs for mortgages, but always in a way that is responsible," said CML director general Paul Smee.
George Osborne is set to announce more details on the scheme today.
A National Housing Federation report has said that the Chancellor's Help to Buy scheme does not address the root of the housing crisis:
Making mortgage deposits cheaper to aspirant homeowners without increasing housing supply doesn't tackle the root of the problem. It simply risks creating another housing bubble where prices are pushed up.
These sticking plaster answers will not heal our critically injured housing market. We need a vision from our leaders that looks far beyond future elections - a long-term house building programme that will create jobs, pump money back into the economy and give hope to millions of young people around the country dreaming of adulthood and independence.Britain must get building again now. The future of the country - and our young people - depends on it.
The Chancellor will host a round table meeting with major mortgage lenders and home builders to deliver details of how the Government's 'Help to Buy' scheme will work ahead of the lending under the guarantee to start from next January.