The multimillionaire Tullett Prebon boss criticised the policy, which would enable first-time buyers to secure part of their house loan on a relative’s savings.
“The ‘idea’ of people who mostly already have inadequate pension provision using part of it to give their children a stake in what are almost certainly still over-priced houses in the UK beggars belief,” he said.
“[Politicians] seem not to have figured out that the problem would just be solved if house prices were allowed to decline.”
He pointed that parents are already able to hand the cash lump sum to anyone so any successful scheme would have to include new tax incentives.
The Lib Dems want to implement the policy early in 2013.