By Daniel Hunter

George Osborne should stop lending to people who can't afford to buy houses, according to Property Maintenance Millionaire Will Davies of aspect.co.uk.

Osborne meets today with mortgage lenders and house-builders to reveal more details of plans to underwrite £130 billion of mortgage lending with state guarantees through the Help to Buy Scheme.

The first stage of Help to Buy was launched in April and offers loans to people to buy a new-build home with a deposit of just 5%. The scheme has been credited with spurring home sales.

"We will face a similar problem where we lend to people without stable employment or an ability to pay back the mortgage which started the credit crisis in the first place," Davies said.

"The other problem is that the scheme is artificially driving up house prices.

"We don't need a government solution to provide more lending for a problem caused by lending.

"This scheme smacks of short termism and is an effort to vote win.

"There is no better solution than creating jobs and creating a workforce that actually wants to get off its backside and get into work."

The mortgage guarantee is designed to support an increase in high loan-to-value mortgages for people who can't afford large deposits, and it also boost house-building.

As of this week lenders have the detail they need to go away and get ready for next January's launch.

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