Britain's homebuying aid scheme boosts new homes market

LONDON, Aug 13 (Reuters) - The British government said onTuesday that 10,000 new homes had been reserved by beneficiariesof its 'Help to Buy' stimulus package, designed to boost theproperty market and encourage developers to build more houses.

The data covers the four months since the scheme waslaunched in April as part of plans to generate economic growthand tackle a housing shortage.

"This government's package of measures to boost the housingmarket is working, with house building and housing supply on theup," said Eric Pickles, secretary of state for Communities andLocal Government.

The scheme, targeted at new-build properties, provides agovernment equity loan that covers up to 20 percent of theproperty price and is designed to help buyers with a smalldeposit get access to mortgage financing.

Critics including Britain's business secretary Vince Cablesay it risks creating a bubble in property prices. A secondphase of the Help to Buy scheme will begin next year, providing12 billion pounds of guarantees.