Strong interest in Help to Buy

The Halifax says it is receiving 500 applications per week from house buyers seeking assistance under the Help to Buy scheme.

The Help to Buy mortgage guarantee was launched 4 months ago for buyers who have trouble raising a big enough deposit.

Critics are concerned that the scheme will help create a housing bubble, particularly in London and the South East of England where prices have risen fastest.

However, the Halifax says that so far, 8 out of ten applications have been from other areas, and 80 per cent are from first time buyers.

The average house price under the scheme is £157,000, which is less than the typical UK price.

In December the Business Secretary, Vince Cable, described a "raging housing boom" in London and said ministers needed to look again at the Help to Buy scheme.

The Halifax reports interest in the scheme is still strong and it has completed 1,000 loans.