Aerial of houses with 'Small deposits' and 'Help to Buy' graphics
Media playback is unsupported on your device

New 'help to buy' mortgage proposals 'may cause bubble'

23 July 2013 Last updated at 19:08 BST

The Chancellor of the Exchequer has met mortgage lenders and house builders to discuss plans to underwrite billions of pounds worth of mortgages for prospective home owners.

The proposals are an extension of the current 'help to buy' scheme, offering government guarantees for those unable to afford large deposits.

However, some business leaders are describing the scheme as potentially disastrous.

Simon Gompertz reports.