The British Property Federation (BPF) has qustioned the effectiveness of measures which are only focused on home ownership, even though this may not be the best course of action for everyone.

Speaking to the BBC, the BPF said that the government should focus on stirring new development and dealing with the massive demand for rental housing by incentivising a large professional rented sector. In German, rental makes up 50% of the housing market, compared to 10% in the UK.

The BPF expressed doubts about the effectiveness of the new interest-free loan scheme being jointly funded by councils and developers ,which would loan them a 30% deposit. Such buyers may yet have trouble raising funds due to being perceived as sub prime.

Ian Fletcher, Director for Residential Policy, said: "We welcome these announcements but question why so many are focused on home ownership when it's clear that demand for rental housing is soaring. The country faces a number of housing crises and whilst this will target help at those home buyers in most desperate need, it will need to be augmented in the forthcoming months if it is to be seen as a truly comprehensive package.

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"We need to look to Europe and develop a branded rental sector funded by institutions which would deliver truly affordable well-managed homes. Incentivising investment in build-to-let would cost the government practically nothing. We also need to revise the way stamp duty is unfairly aggregated (meaning that big investors pay more than they should) and look at how rental is treated for planning purposes.

"Measures to help first time buyers are of course welcome, but removing stamp duty for homes below £175k is a relatively blunt instrument which will vary significantly in its impact across the country because of the variation in house prices. Lending potential buyers 30% of the purchase price for a deposit will have to be judged on its take up. In current conditions it may prove difficult for many first-time buyers to obtain the other 70% of the purchase price at competitive rates because they will be treated as sub-prime mortgages.

"Overall, these measures are a step forward, but several more will be needed on what will be a long road to recovery and growth in the housing market."

(CD/KMcA)