But Treasury sources confirmed that the idea of second homes is still under
consultation as the issue is complex. It could mean, for example, a parent
being allowed to buy a second home with a Government- backed mortgage for
their child.

Allowing second homes could potentially squeeze out struggling first time
buyers even further if current home owners are getting Government help to
add to their property portfolios.

There have also have been warnings that the scheme could create a new housing
bubble leading to another crash in the property market.

Mr Osborne today promised his new property ownership scheme will not lead to a
dangerous Northern Rock-style lending.

The Chancellor said he wanted hard-working people to “fulfil the dream of
home ownership” but the Government would not put the taxpayer at risk
by letting people borrow more than the value of their property.

Speaking on ITV’s Daybreak, Mr Osborne said he did not want to “return to
the days of 125 per cent Northern Rock mortgages”.

“If we were in a housing boom of course we wouldn’t be doing this sort of
thing,” he said.

“But at the moment there are many people who are watching this programme,
who are working incredibly hard, probably about to go out to work right now,
and they can’t begin to afford the 25 to 30 per cent deposit they’re being
asked these days to buy a house. Now I’m not talking about returning to the
days of 125 per cent Northern Rock mortgages.”

Asked why the Government is not building more social housing, Mr Osborne said
that is not the only solution as many people want to own their own home.

“I just want to help families, hardworking families, buy a home, put down
a deposit, afford the mortgage,” he said. “And all those things
have become unaffordable because of what’s gone wrong in our banks. I think
there is a role for government and the rest of society to help people fulfil
their dreams of homeownership.”

The £130 billion home ownership scheme was one of several measures in
Wednesday’s Budget to help boost the economy, which is now only likely to
grow by 0.6 per cent this year. The Chancellor also had to admit that
austerity would have to last for another year as the Government will take
longer to bring down the national debt.

Despite the gloomy figures, Mr Osborne is under to pressure to explain whether
he used clever accounting to make Britain’s finances appear better than they
really are.

He admitted today that the Government delayed paying its bills to the last
minute, but denied fiddling the figures.

second home buyers could get state aid for mortgages – Telegraph.co.uk
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