'Absurd to suggest scheme fuelling prices', say builders

The Treasury has said that 7,313 homes were sold under the government's Help to Buy mortgage guarantee scheme in the first three months of this year.

Under the scheme, buyers are able to buy a new-build home with a deposit of just 5%, and can borrow up to 15% of the property's value from the government. The government then owns a stake in the property.

The scheme is separate from the equity loan part of Help to Buy, which began in England 13 months ago. Scotland and Wales have separate equity loan schemes.

John Stewart, director of economic affairs at the Home Builders Federation said it was "absurd" to suggest that the Help to Buy scheme was fuelling house price increases.