Cook said: “The money from the first phase of the Help to Buy scheme will run out before the end of the scheme in three years time.
“For those looking to purchase using the mortgage guarantee element of the scheme the cheapest rate is currently 4.99%. At that rate it would still be cheaper to remain in a rental property.
“Help to Buy will not result in a fully functioning market.”
The PRS is currently growing at around 250,000 households a year compared to 200,000 before the recession.
Cook warned that the current levels of stress on the PRS could be a recipe for disaster.
He said: “At the markets peak the number of buy-to-let products available to the market was considerably higher than it is now.
“The lack of availability of such products now is creating a supply and demand deficit. This will only drive up rents and put more stress on the PRS.”
Cook was speaking at the astl conference at Butchers Hall, London yesterday.
