In a letter addressed to Gavin Barwell, the new housing minister, Tottenham MP David Lammy alleged that the Government’s affordable home ownership schemes’ website stated that the Help to Isa would help with a deposit, while in actuality the 25% bonus cannot be used for a deposit on a property at the point of exchange of contracts.

The government’s Help to Buy website currently states that the bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.

Mr Lammy has now urged Mr Barwell to clarify the details of the scheme.

The letter read: “…Young people and all those saving in the hope of one day owning their own home have got every right to feel betrayed and conned by the government.

“Payment of a 25% bonus upon completion of the purchase of a home will only help those lucky enough to be able to already afford a deposit – often thanks to support from family members – and will do nothing whatsoever to help those who are priced out of ever getting on the housing ladder.”

Mr Lammy highlighted comments made by former chancellor George Osborne during the launch of the scheme in December 2015, in which savers were allegedly told that the government would offer a £50 top up on every £200 saved towards a deposit.

The letter also criticised the government’s extension of the Right to Buy scheme.

Mr Lammy claimed that 12,246 council homes were sold to tenants in 2015-16, despite only 2,055 replacements being started.

The MP for Tottenham said the scheme had caused the housing benefit bill to soar as more families are forced into the private rented sector.

The letter continued: “The situation is already dire and is set to continue to get worse unless the government takes concerted action and invests in order to build genuinely affordable homes that will help address the housing crisis.”

The Department for Communities and Local Government has been approached for comment.