A NEW initiative to boost the housing market, revealed in the Budget, could spark growth in the economy.

Tax associate at York accountants JWPCreers Alastair Byrne said he thought the Help To Buy scheme could kickstart the economy.

He said: “Traditionally over the last ten to 15 years, the economy has been driven by the property market. It could be the taking the stick out of the log jam to get it all flowing again.”

Simon Usher, director in charge at Persimmon Homes Yorkshire, said they had already seen improvements in the market with the FirstBuy and NewBuy initiatives set up to help first time buyers and households with an income of less than £60,000.

Mr Usher said the £3.5 billion Help To Buy scheme, which will come into force from April 1 for three years, recognises the importance that the new homes industry plays in the growth of the UK economy.

He said: “We understand that Help To Buy is made up of two schemes – “equity loan”, where the Government will loan home buyers up to 20 per cent of the value of their new-build home and “mortgage guarantee” where lenders will be incentivised to make more mortgages available for people with small deposits.

“We believe that these two initiatives complement the schemes currently available and will help create much-needed movement within all levels of the housing market.

“To meet demand 2013 looks like being a busy year, with plans to open a further four sites in Easingwold, Hornsea, Retford and Thirsk. The supply of new homes is an ongoing issue across the UK and our team is working hard to deliver a diverse range of local housing where it’s needed most through our brands Persimmon Homes and Charles Church.”