moneysupermarket.com: Rent first, buy later announcement

Commenting on the Government's Rent First, Buy Later pilot, Louise Cuming, head of mortgages at moneysupermarket.com, said: "At first glance, this seems to be a positive move, addressing the Catch-22 situation of how you can save for a deposit while paying the rent.

"However, there are no details of the number of properties available under this scheme. Private landlords will want recompense from the Government up to their full 100 per cent and the number of Housing Association properties being built is small in comparison to the demand for rental properties. So where are these new homes for rent under this attractive scheme going to come from?

"If you are lucky enough to qualify, the sums are still quite frightening. The 20 per cent rental discount alone would only save you enough for the minimum five per cent deposit on a house after around five years. More importantly, where are the lenders to meet the demand for mortgages?

"While it's good to see some thought being put into how to revive the housing market, this seems to be yet more spin without substance and does not address the longer-term problems of how to stimulate lending.

"Defrosting this frozen market will take a lot more than this."