Prime Minister David Cameron announced that 6,000 people have applied for a mortgage using the Help to Buy indemnity scheme, compared to just 2,000 in November.

The scheme, launched in October, encourages mortgage lenders to offer mortgages up to 95% loan-to-value (LTV) by insuring the lenders against borrowers defaulting on their payments.

To date, 750 property purchases have been completed since the scheme was rolled out.

The Prime Minister has called the scheme a success and said he hopes it will allow “thousands more to realise their dream of home ownership”.

However, the initiative has been criticised by the Labour party, which warned it may lead to a housing bubble as prices become inflated.

House prices in the Uk rose by 8.4% in 2013, according to the NAtionwide house Price Index.