Chancellor tells ITV News the sale of £3.21bn worth of Lloyds shares will not necessarily trickle down to struggling households.
Exclusive analysis for ITV News reveals that more than a hundred thousand families have lost a total of £3bn since the housing crash.
House prices are falling and more drops are expected in the coming months, surveyors have said.
Property prices rose at their fastest rate in more than three years this month, Nationwide has reported.
Prices have been rising every month for the last year and the latest monthly increase of 0.6% took average UK house values to £174,566.
The annual increase is the strongest seen since July 2010.
However, prices are still around 6% below an all-time high recorded in 2007, Nationwide said.
House prices in London were up by 8.7% year-on-year in October, while prices in the North East have dropped by 3.1% year-on-year, Land Registry figures showed.
George Osborne has dismissed fears that rising house prices could create an unsustainable 'bubble', saying property prices had come down.
"The facts are that house prices are a quarter less than what they were five years ago, and the number of people getting mortgages is half what it was five years ago," the Chancellor told ITV News, amid reports that property prices in the south-east have risen by nine percent.
Mr Osborne also denied that the Government's Help to Buy scheme was contributing to a potential housing crisis.
"I don't accept that. We don't want a repeat of what happened before, which is why I've given the Bank of England the power to deal with housing booms," the Chancellor said.
Barratt Developments chief executive Mark Clare said a housing recovery was not limited to London.
"We are seeing the housing market recovery starting to spread beyond London and the south east with a 29.4% increase in our average net private reservation rate across the Group," he said.
"Our £2.6 billion commitment to land investment since 2009 puts us in a good position to capitalise on these market trends."
Barratt Developments compared their results in the year to 30th June 2013 with performance in the previous year.
- Profit before tax up 73.7% to £192.3m
- Net debt reduced from £167.7m to £25.9m
- Board proposed shareholder dividend of 2.5p per share payable in November
- 13,663 completions compared to 12,857 in 2013
Mark Clare, group chief executive, said: “These are significantly improved results and we have had a very strong start to the new financial year."
Barratt Developments said their average selling price jumped to £194,000 in the year to 30th June 2013 from £180,000 in 2012.
Group operating profit was £252.7m, up 32.2% on the previous year, the house builder announced.
Revenues were up by 12.2%.
"Stronger market conditions, coupled with the extensive improvements in our operational performance, have led to a significant improvement in the financial results and the outlook for the Group," chairman Bob Lawson said.
House prices rose 2.7% in the year to March, slightly more than in the 12 months to February http://t.co/5m2dFpRvpW
Factory gate prices rose 1.1% in the year to April, down from a rise of 1.9% last month. Input prices fell 0.1% http://t.co/56VmH1x5Io
Demand for homes reached its highest level in more than three years last month as Government schemes to boost the market began to take effect, surveyors reported today.
New buyer enquiries were at their highest level since November 2009 and prices were also starting to rise, the figures suggested, in fresh signs of an upturn.
The Royal Institution of Chartered Surveyors (RICS), which published the figures, said 25% more surveyors reported that demand for property rose rather than fell.
It is the seventh positive result in the last eight months, following a positive 13% reading for March.
Chartered surveyors saw around 17 homes sold on average over the three months to April, maintaining a three-year high from March.
House price rises were reported most strongly in London, where 28% more said they were on the way up, with a figure of 11% in the South East.
Sales of homes worth over £1 million have soared to their highest level since the height of the 2007 housing boom, a report found today.
Top-end property sales increased by 2% year-on-year in 2012, with Scotland, the East Midlands and London all seeing rises, Lloyds TSB found.
Million pound properties out-performed the rest of the market in 2012, as sales of homes below this price bracket dropped off by 3% year-on-year, the report said.
Across Britain, 7,397 homes with a price tag of over £1 million were snapped up last year, marking the highest number seen since 2007. Almost one quarter of all these sales took place in the London boroughs of Kensington and Chelsea and Westminster.
By contrast, just four sales of million pound homes took place across Wales during 2012 and nine were made in North East England.