When the council proposed to stand guarantor for some first-time buyers, Councillor Roger Lord forced it to reconsider the plan on the grounds it promoted risky behaviour.

But on Friday members of the county council corporate scrutiny committee voted 12-1 in favour of the scheme, the Daily Gazette reported.

Under the local authority mortgage scheme, the council will act as a guarantor for local first-time buyers, allowing them to apply for a mortgage from certain lenders with a 5% deposit.

The Essex branch of UKIP had argued the scheme encouraged borrowers who would otherwise not be offered a mortgage to take out 95% loan-to-value loans.

However, Essex County Council leader David Finch denied this and told Your Mortgage the scheme had been tried and tested by 93 other local authorities:

“We are just trying to help people get on the property ladder. People who own property generally spend money on refurbishments and contribute to the local economy.”