The economy failed to gain momentum with boost attempts for manufacturing and business so the housing market has become the focus to aid in economic growth.  The housing market has suffered since the credit crisis with first time buyers becoming rare to the property ladder.  Without first time buyers there has been a lack of those selling starter homes and moving up to large properties.  It is through a healthy supply of first time buyers helping to move starter home buyers to larger homes and then those same homeowners moving up or down the ladder that keeps the ladder moving.  It has come all but completely frozen in the last few years.

The latest scheme proposed by the government is the Help to Buy scheme which is expected to allow £130 billion worth of new mortgages from 2014.  The announcement of the new scheme pushed housebuilder shares upward.  It is hoped to thaw the UK property ladder.

Supporters are excited that the scheme will allow hopeful borrowers to attain mortgages with a 5 year term 20% interest free loan from the government as long as they have at least a 5% deposit available toward a newly built home.  There is also a mortgage guarantee scheme that will begin in 2014 that will support borrowers that purchase a home up to a value of £600,000.  This scheme is backed for up to £12 billion in mortgage values.

The schemes are expected to boost mortgage demand, home sales, and the home construction industry.  Critics fear that it will only build a house market bubble much like the failed one in the US that occurred with the same structured programme.