Paul Smee agreed with MPs on the Treasury Select Committee that the Help to Buy schemes could end in a “cliff edge”. He said: “That is entirely a risk and that is why I have been talking for some time about an exit strategy that avoids that cliff.”

He said the Help to Buy mortgage guarantee scheme “had good features” but continued: “I would be very concerned if it went on beyond its three-year lifespan. I would like there to be a decision on how it was tapered soon.

“The taper should be determined soon. I am not saying when it should start, but before three years, so the scheme can close after three years.”

Tactics to reduce lender use of the scheme could including lowering the loan-to-value ratio, increasing the fee lenders must pay to benefit from the guarantee scheme and reducing the maximum loan size, he suggested.