It means a return – for some – of 95 per cent LTV mortgages for new build homes and a mortgage indemnity scheme, in which the government will underwrite part of the risk to lenders, that could help up to 100,000 people.

The Prime Minister has also committed to providing an additional 200,000 new homes by 2015 through a “build now, pay later” deal. DCLG will now work with Whitehall to release ‘as much government-owned land as possible’ for private development. Local councils will also be encouraged to make their unused land available for development.

The government says that it recognises the need for greater availability of mortgage finance and responsible lending to the significant number of home purchasers who can afford mortgage payments, but not the levels of deposit currently required by lenders.

The host for the launch, Ian Baker, Linden Homes Group Managing Director, said, “This is a significant step forward in making responsible, affordable lending available to home buyers across the country to help them purchase the home they’ve always wanted”.

Inevitably, the Opposition wasn’t so impressed. Labour said the strategy was "too little, too late" and did not compensate for earlier cuts to housing budgets, but most responses to the news were positive. The British Property Federation (BPF) welcomed the government’s strategy, but warned there must be no delay or timidity in its execution.

It is good news for the BPF, which has been campaigning for the creation of a large-scale, professionally run private rented sector, where major institutions such as pension funds build homes to let. The government has now committed to bringing forward sites for build-to-let and to conduct an ‘independent’ review of the sector in the New Year.

Ian Fletcher, director of policy at the BPF, said, “The housing strategy is a welcome first step towards a coherent and long-term vision for house building in this country and it is good to see the government recognise the importance of encouraging investment in to the private rented sector, something that will be vital if we are going to see the necessary number of homes built to meet demand.

RICS was also cautiously optimistic. Spokesperson Michael Newey, said that he hopes that the proposals can go some way to boosting the stagnant housing market. “Better access to mortgage finance is essential to bring forward the new homes needed to help more achieve their aspiration of home ownership, particularly first-time buyers. The New Build Indemnity Scheme is to be welcomed but care must be taken to ensure it does not distort the market or lenders affordability calculations.

The focus on new build will not free up chains and may reduce demand for second hand property, putting those who wish to move but have little equity at a disadvantage. Whilst any attempt to stimulate supply and demand will help both consumers and developers, limiting funding to niche areas of the market in this way does not solve the wider need for adequate levels of funding in all parts of the market.

“This is a good start from the Government but more detail is needed. RICS looks forward to continuing engagement with the Government and the sector to deliver a sustainable housing market that delivers aspirations across all sections of the market, benefiting UK PLC as a whole.”

Ian Potter, Operations Manager at ARLA said, "We are pleased that the Government has recognised the PRS in its Housing Strategy and the important role it plays in today's struggling housing market. Equally, measures aimed at First Time Buyers and affordable housing tenants are welcome. While we would like to have seen some measures aimed directly at the PRS, the Government's commitment to conduct a review of investment into the PRS in the future is a step in the right direction and we look forward to the findings.

"The Government's acknowledgement that choice and quality is vital to tenants is also positive. To ensure they are protected from issues like loss of deposit, we would urge all tenants and landlords to use an agent regulated to a recognised body like ARLA."