A housing and construction market expert has warned that the rumoured extension of the mortgage guarantees scheme would not make much impact given the rapid increase in mortgage rates in recent months.

Simon Rawlinson, head of strategic research and insight at Arcadis, said because mortgage rates themselves have increased, it is no longer merely the deposit that is a barrier to affordability, but the rate on the mortgage itself.

Speaking at the Housing Forum national conference in London this week, he said: “This is an old solution to an old problem,” and added “It probably wouldn’t make much difference’.