I have been looking at a few analyses of this deal, the more I look, the more I am convinced that it is a big election ploy which will eventually cost the "normal" people dearly.
The guarantees being offered will only run to just after the next election, the fixed, lowish mortgage guaranteed rates do too, in 2 years time, the interest rate will leap upwards.
The totally false market created will convince people who already own homes that they are "wealthier" as the bubble develops.
The election will come in, just as the price rises are looking good and the interest rates are still lowish, hopefully winning the tories a few more votes to get them another five years in power.
If they spent the money being put into this housing bubble, forcing developers to build affordable housing stock and encouraging the councils to build more social housing the situation would be much better for "normal" people, more jobs would be created and more families housed decently...