George Osborne asked the Financial Policy Committee (FPC) to review the scheme and its parameters every September to keep track of its effects on the market.

In a letter to the Chancellor published today, Carney said: “There has been strong house price growth in some regions but, in the committee’s judgement, the scheme does not appear to have been a material driver of that growth.”

The mortgage guarantee scheme received widespread criticism ahead of its October 2013 launch. The Treasury Select Committee and the Office for Budget Responsibility raised concerns over the impact on house prices and the government’s exposure to high-to-value lending.

The latest government statistics released on the scheme showed the average house price in the Help to Buy mortgage guarantee scheme was £153,800 compared to the national average of £265,000.

In his response to the FPC Osborne said he was pleased with the conclusion that the scheme did not pose material risks to financial stability in the UK.

The FPC also confirmed that the scheme was supporting responsible lending after finding no evidence of looser underwriting standards within the scheme.

Yesterday the FPC’s loan-to-income cap was formally introduced which restricts lenders’ new lending at income multiples of four-and-a-half times or more to 15% of its loan book. The restriction applies to all loans which are issued under the mortgage guarantee scheme.

Since its inception in October 2013 to June, the scheme has funded 18,564 loans worth £2.7bn, 79% of which were first-time buyer purchases.

Buyers using the scheme have been spread across the country, with 94% based outside of London.

The scheme can be used for mortgages on new build and existing homes by first-time buyers, home movers and remortgage borrowers with a minimum of 5% deposit.