Ed Balls calls for cuts to Help To Buy scheme

The Government's programme of taxpayer-funded support for first-time home buyers should be cut back, amid fears rising house prices could push up interest rates, shadow chancellor Ed Balls has said.

In an interview with The Guardian, Mr Balls said the unbalanced nature of the housing market risked choking off Britain's economic recovery.

He called on Chancellor George Osborne to reduce the maximum size of a mortgage that qualifies for support under the Help To Buy scheme from £600,000 to £400,000 - with regional caps to reflect the vastly higher prices in London and the South East.

"The low interest rates we need to strengthen growth and business investment are under threat if we do not have a balanced housing market recovery," he said.