Housing minister Gavin Barwell has been urged to apologise on behalf of the Government and accused of misleading savers over the Help to Buy ISA scandal, despite it being former chancellor George Osborne who drew up the scheme.

Although he has only held the housing portfolio for just over a month, Barwell has been on the receiving end of a stern letter from Labour MP David Lammy after it emerged that the much-touted Help to Buy Isa scheme wouldn’t support an initial deposit on a property.

The Help to Buy Isa was actually launched by Osborne last year as a way to help first-time buyers save for a deposit, but Lammy’s letter calls for Barwell to clarify how the product works and wants him to “apologise for misleading savers”.

The Telegraph reported over the weekend that the 25% Government bonus on top of their deposits promised to first-time buyers wouldn’t be paid upfront, but only after exchange of contracts.

This means buyers still need to find the money for a deposit at exchange.

Lammy said: “This is a scandal and a disgrace. I am absolutely outraged on behalf of my constituents, young people, Londoners and all those priced out of ever owning their own home – who all have absolutely every right to feel betrayed and conned.

“This is shameful false advertising by the Government and yet again clearly shows how little this Government care about tackling the severe housing crisis.”