As one door closes, another opens.

An integral part of the Government’s Help to Buy scheme – the bit that enabled first-time buyers to get a home with just a 5% deposit with the Government guaranteeing the other 95% – is to be axed at the end of the year.

But within days of confirmation of its demise, the Government announced a total of £5bn in incentives to get more new homes built.

The loss of the guarantee scheme could have some implications – after all it’s estimated that some 86,000 people were helped on to the housing ladder by this incentive, introduced in 2013 during David Cameron’s Government.

However, it could be argued that it was really only a short-term stimulus measure to help confidence return to lenders. There is now plenty of evidence of that happening, with lots of different mortgage products now on the market. In 2013 there were just 56 products offering 95% mortgages – many of which were very expensive. Now there are more than 270 to choose from.

One of the original fears about Help to Buy – a point I made myself – was that it might create a housing demand bubble at a time when there weren’t enough properties being built. In other words, stimulate demand for homes which weren’t there, driving up prices.

In July, the average house price in England was £233,000. So to qualify for the mortgage guarantee scheme you’d still need a 5 per cent deposit of £11,650 and be earning nearly £50,000 a year.

The new incentives to get the country building houses again is squarely to tackle this shortage and, combined with recovered confidence in the mortgage lending market, could be a real positive for house-buyers. It won’t happen overnight, but we need to get the housing market moving again.

Incidentally, you will still be able to get a 20% government equity loan, for those buying new-build houses or a Help to Buy ISA in which for every pound you save, the government gives you an extra 25p, up to a maximum of £3,000 to help you save for a deposit.

The mortgage market is a complex one, with more and more products being added by lenders all the time. I have always offered a service which finds a lender from the whole of the market, so do get in touch if you need help navigating through the mortgage maze…