David Cameron said more than 6,000 people have now applied for a mortgage through the flagship scheme, compared to just 2,000 in November.

The initiative, launched in October, allows people to apply for a government-backed mortgage with as little as a 5% deposit.

So far, 750 property purchases have been completed since the scheme was rolled out, and once those mortgages are approved, Cameron anticipates their value at around £1bn.

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 across England and Wales were up 3.2% in the year to the end of November, according to the Land Registry, with London leading the way with a 10.2% rise.