UK's Business Secretary Vince Cable has raised questions over the `Help to Buy scheme' of the government seeking to offer equity loans of up to 20 per cent for buyers of new-build homes in England and will also provide guarantee party from next year for buyers across the UK.

The government in the UK has been taking steps to support the housing market by providing backing to the buyers. Cable caused doubts over the new scheme saying that it might increase the price of houses in the country. Chancellor George Osborne had announced the scheme in March budget and there were concerns that it would push up prices as there is less supply of houses.

Mr Cable said, "The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market. But, if it's properly designed, it could be a useful addition."

Under the scheme, people in the UK will be able to buy a home with a 5 per cent deposit and the UK Government will act as guarantor for a mortgage for an extra 20 per cent of the value of the property. The UK housing market is facing a difficult economic situation due to the slowdown in the economy as well as the on-going sovereign debt crisis in the Eurozone. However, government measures and lack of supply has increased the prices and the sector is beginning to show signs of recovery.