Property boost from ‘Help To Buy’ scheme

It will offer state-backed mortgages, allowing buyers to get their dream home with just five per cent deposit.

That will amount to under Ј10,000 in six out of 10 regions across the North, the Midlands and Wales, property website Zoopla found. With an average asking price now at Ј222,168, it said a typical five per cent deposit would be Ј11,108.

The website said the new phase of the scheme - which applies to properties under Ј600,000 - could knock Ј22billion off deposit needs.

At Ј16,103, London buyers will still need most cash, but house hunters in Yorkshire will need just Ј8,129 in hand.

Peter Rollings, of estate agent Marsh & Parsons, said it would act "like a shot of adrenalin" for the market.

Housing, bubble, price, Help to Buy, scheme, marketRSB to take part in Help to Buy scheme[GETTY]

Studies suggest that Help To Buy will ramp up demand

Studies suggest that Help To Buy will ramp up demand, prompting critics to warn it could cause a price bubble.

Experts say lenders will still impose tough borrowing rules and interest rates may be set at six per cent. That means a Ј200,000 mortgage would cost Ј1,316 a month.

RBS, Lloyds and Halifax are taking part - but other lenders want more details.

The scheme will run until 2017, providing Ј12billion of guarantees which will unlock Ј130billion of lending.

express