Osborne says that former Bank governor King never objected to Help to Buy

Chancellor George Osborne has said that former Bank of England governor Sir Mervyn King had no objections to his housing plan, the Help to Buy scheme saying that "if he had said I strongly object, it probably would have killed it".

In May Sir Mervyn warned that the Help to Buy scheme could be "dangerous" and that it is "very important we don't see it as a permanent feature of the landscape".

Talking about the scheme, Osborne said that "I don't think in the current environment a house price bubble is going to emerge in 18 months or three years" and that it "is designed as a three year scheme, and not something that could be extended to four, five or six, that's not the intention".

The scheme has been widely condemned by economists, and concerns have even been raised by the Council of Mortgage Lenders.