'Risk of Help to Buy creating housing bubble is unlikely'
An estate agent in Midsomer Norton says the Government's new Help to Buy scheme will help first-time buyers get their foot on the property ladder.
And Tony Bishop also says he is confident that the scheme will not create a housing boom.
Critics of Chancellor George Osborne's project say the initiative will backfire by driving up house prices.
Help to Buy was created to help buyers with a smaller deposit move into home ownership, with Government equity loans of up to 20 per cent of the purchase price of a new property.
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A second phase Help to Buy 2 will be launched in January to include all homes on the market – adding second-hand properties into the mix.
Mr Bishop of Bishop & Co said: "Similar schemes in the past have helped thousands of people get into the housing market.
"With interest rates at historically low levels, it makes sense for those looking to get on the ladder and those wanting to move on to act now."
He added: "There has been talk of a housing bubble being created as a result of the scheme but in the South West, transaction levels are still fairly low and we are not seeing the kind of price increases being reported in London and the South East, so personally I don't think a bubble is likely.
"What the scheme is likely to do is encourage more people to put their properties on the market, which will help to satisfy the increased demand we are experiencing. We are steadily moving back to a more sustainable level of transactions and this can only help.
"Buyers, especially first timers, can only buy if prices remain realistic, achievable and affordable so the return of first time buyers in greater numbers can only be good for the housing market as well as the general economy."