Get on the property ladder with five per cent deposit

People with a five per cent deposit will get a government-backed loan, which will enable them to get a mortgage at the preferential rates generally offered for those with a 20 per cent deposit.

The first stage of the scheme began in April.

Prime Minister David Cameron has recently declared that the plan to help first time buyers starts this week, in order to increase home ownership in the short-term. 

Barratt Homes will help people whose aspiration is to get on the housing ladder, through the ‘Help to Buy’ scheme, which will underwrite £130billion of new loans for 200,000 homes up to the value of £600,000.

In fact, not only house prices in Britain have doubled in less than a decade, but cost of property in London surged by almost 10 per cent last year, rising by £40,000, which is almost twice the average salary in Britain.

It means the dream of owning a property is becoming harder to realise even for those who save a big chunk of their salary.

Concerns have raised over the risk of a housing bubble, as the scheme is artificially inflating already high prices, according to official figures from the Office for National Statistics.

In fact, the average London property was worth a record £438,000 in July, up £13,000 in a month and 9.7 per cent more than a year previously.

Mr Cameron, however, has clarified that there is no housing bubble, according to advice from the Bank of England.