Under the scheme, first time buyers can take out a mortgage for 70% of the cost of a property, and get the remaining 30% from the Government. After five years on an interest-free basis, a 1.75% rate is levied for the sixth year on the Government loan.

However, the £400 million initiative is only eligible for first time buyers earning less than £60,000. The Government has predicted that 18,000 buyers could benefit from it, with 1,300 of the mortgages being based in London.

357,800 people entered the market in 2007, and 20,000 potential buyers have already registered their interest in the scheme. 

Commenting on whether the scheme is a good idea, Jeremy Leaf from the Royal Institution of Chartered Surveyors pointed out that first time buyers normally move properties within a couple of years: “In the short term, for the first time buyer, it could be an expensive mistake.” He said.