Help to Buy scheme 'means more homes needed'

More action needs to be taken to tackle the lack of homes, according to surveyors and lenders.

Studies have pointed to demand outstripping supply in homes coming up for sale, amid fears the new Help to Buy scheme will fuel another housing bubble.

Partially completed house
The Royal Institution of Chartered Surveyors warns the country is not building "anything like" the number of homes it needs. Credit: PA

Peter Bolton King, from the Royal Institution of Chartered Surveyors, said the new phase of Help to Buy "exacerbates a situation that is already there. The underlying problem is a lack of supply".

But David Cameron said the scheme also helps with supply "for the simple reason that the builders won't build unless the buyers are able to buy".

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Help to Buy scheme launched

The second phase of the Government's controversial £12 billion Help to Buy scheme is launched today . It is intended to help first time home buyers obtain mortgages worth up to 95 per cent of property values