Some critics and commentators have warned that Help to Buy could do more to stoke house prices than building volumes in coming years.
But several major house builders have backed the Budget initiative and confirmed they would boost building volumes if Help to Buy takes off.
Mark Clare, Barratt Developments group chief executive, said: “This is a major boost for homebuyers and house builders.
“We are now gearing up to meet the increase in inquiries that we expect to see.”
“Over the last five years high deposits and limited availability of finance have combined to lock many people out of the housing market.
“This is an important step towards addressing these issues and meeting the housing needs of the nation. It will also be a major boost to the economy – every additional home we build creates two new jobs.”
Clare’s view was echoed by Tony Pidgley, chairman of Berkeley Group. He said: “The biggest problem has always been the mortgages and this is a meaningful plan to unlock problems. We will be able to build extra homes because of this.”
Steve Roche, Persimmon Homes’ group communications director, said:“We believe that these two initiatives complement the schemes currently available and will help create much needed movement within all levels of the housing market.
“We now actively await further information.”
National Housing Federation chief executive David Orr has been one of those welcoming the plan but it could create another housing bubble.
He said: “There is a risk the Government is simply helping people that could already buy a house without Government assistance.
“Government needs to ensure that if we are to avoid creating another housing bubble, these help to buy measures must increase new house building rather than simply push up house prices.”
The NHF said that investing the £3.5bn earmarked for Help to Buy loans directly into affordable housing could deliver up to 175,000 homes, dramatically impacting on housing need.
