The Bank of England will have the authority to contain the impact of the proposed `Help to Buy scheme' in the housing market in order to avoid a property bubble.

The Help to Buy scheme backed by Chancellor George Osborne is set to be rolled out in January. Under the scheme, taxpayer will be able to get insurance for up to 15 per cent of a mortgage on houses worth up to £600,000. The scheme will allow banks to offer mortgages upto 95 per cent with very little risk. Chancellor 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.

The scheme is aimed at helping those with small savings, who are not able to provide large deposits, to purchase a house. Politicians in the UK have said that the government's schemes to help stabilise the housing market will not result in a housing market bubble, as suggested by some in the previous few days. UK's largest house builders, who have always claimed that the lack of mortgage availability has restricted recovery in the property market, have backed the claims by the government.

Many have said that the `Help to Buy scheme' of the UK government could push up the prices of the houses in the country. The government in the UK has been taking steps to support the housing market by providing backing to the buyers.