The majority of the Government’s housing spending is fuelling demand, rather than going towards house building, new analysis has revealed.

Research by Shelter of the current parliament’s spending shows that just one third of money, £16.05bn, set aside to build homes is actually being targeted towards increasing supply.

The other two-thirds, £28.7bn, is being funnelled into programmes that increase demand, and which risk pushing up house prices even further.

These programmes include the Lifetime ISA and the Help to Buy ISA, equity loan scheme and mortgage guarantee.