The timber and timber frame sectors have welcomed the construction boosting potential of the government’s NewBuy mortgage guarantee initiative, and its extension of the right to buy scheme. But there are also calls for further action.

Under NewBuy, buyers will be able to borrow up to 95% of the value of a new house, with the government and building sector providing loan guarantees.

Under the revised right to buy scheme, social housing tenants get discounts on homes and flats of 35% and 50% respectively after five years’ residence. The government has also pledged to replace properties sold on a “one in, one out basis”.

Construction sector backers of the initiative hope NewBuy alone will lead to an extra 100,000 new homes.

Timber Trade Federation chief executive John White said any move to stimulate the “cash-starved” construction market was positive.

“We can build the houses, what is needed is to get the finance in place,” he said. “If the NewBuy scheme gets people on the housing ladder, it will pull the building through.”

A boost to social house construction from the right to buy changes would be particularly valuable for the timber sector, he added.

“With its emphasis on affordability and sustainability, social housing tends to be a bigger user of wood and timber frame,” he said.

UK Timber Frame Association chief executive Andrew Carpenter said that the government was “finally realising construction is a barometer for the wider economy”.

“It’s the housing sector that takes us into recession and that leads us out,” he said.

But he added that the government should also take into account what first-time buyers have to pay to run their new homes.

“It’s a massive opportunity to get something right for home buyers and build them houses that are thermally efficient and economical to run,” he said. This, would make timber frame “first choice”.

British Woodworking Federation chief executive Ian McIlwee said he was supportive of any measure that helped increaes new house building from the current level of 130,000 a year towards the 240,000 needed.

“But there’s a risk banks will swallow the benefits of the NewBuy initiative in higher mortgage rates,” he said. “And planning permission still takes too long.”