It was designed to provide decent housing for those who for a variety of reasons could not afford to pay the market rate for their housing. With many new houses costing well in excess of £300,000 it prevents many families from affording a new property. First time buyers are also penalised by high property prices. Five houses from mine is a house for sale for £550,000. The estate agents details give a mortgage projection. With a 10% deposit the monthly payments would be £3400. Now not everybody is going to be able to afford that. So simply extrapolate the values for various house values and the problem becomes very serious. Even a two up, two down terraced house at £250000 with 10% deposit is a problem.