How previous Government housing schemes have failed to help buyers and home owners - Telegraph.co.uk

One of the main criticisms of such schemes is that they don't provide a lift for the rest of the housing market. If first-time buyers are only able to use this funding to buy newbuilds this doesn't help on the next run of the ladder who can't sell because first-time buyers can't raise the necessary finances.

First Buy grew out of the Home Buy scheme, launched by the last Government with similar fanfare. This scheme was designed primarily to encourage developers to build affordable housing for key workers. But while it has helped some with new build properties, affordable housing still remains a significant problem, particularly in urban areas and the South East.

It isn't just first time buyers that the Government has been keen to help. It's also targeted taxpayers money at home owners who are struggling with monthly repayments – again with mixed results.

In 2008 the Labour Government announced its flagship "mortgage rescue scheme". This £240 million scheme was designed to stop borrowers being evicted from their homes. Latest figures published earlier this year suggest that just 2,600 households have been helped by this scheme – significantly less than the 6,000 families the Government said it would help when the scheme was launched. New figures are expected to be announced this week.

Under this scheme, families were able to either get an equity loan to reduce their mortgage, or sell their home and remain as tenants.

The Homeowner Mortgage Support Scheme (HMS) has been even less effective. This allowed home owners to reduce their monthly mortgage repayment for up to two years, if they had lost their income, because they had been made redundant or faced reduced hours, for example.

It closed in April and just 63 home owners had made use of the support scheme.

Latest figures from the Council of Mortgage Lenders show the number of homes taken into possession to be largely unchanged, increasing by one per cent on the previous quarter to 9,200. Historically low interest rates have helped many families struggling with mortgage repayment, but there are fears that when rates do go up, this picture could change dramatically, particularly if unemployment is still climbing.

Earlier this month, Grant Shapps, the housing minister said that over the next two years the Government was investing £200 million into the Mortgage Rescue scheme, which is designed to offer "a last resort to the most vulnerable families to avoid repossession".

He added: "Owning a home is an aspiration for many people. But just as we are helping people to get onto the property ladder we are also committed to ensuring advice, information and real practical support is available to help ensure that even in tough times people are helped to stay on the property ladder and that repossession remains the last resort."