George Osborne has had further warnings against his flagship Help to Buy scheme, this time from the European commission.

The Commission has called for the chancellor to “deploy appropriate measures” because of the rocketing house prices in London, and fears for the overall effect it will have on the housing market in the UK.

The changes the commission wants are adjustments to the Help to Buy Mortgage Guarantee and an increase to council tax on expensive properties.

The concerns were announced in a report from the European Commission that aimed to tell the biggest economies in Europe how to grow and become stronger and more sustainable.

“The Commission recommend that the UK deploy appropriate measures to respond to the rapid increases in property prices, notably in London, for example by adjusting the Help to Buy 2 scheme and mitigating risks related to high mortgage indebtedness,” the report read.

It also warned that the higher property prices had not been reflected in the council tax bands and that this was upsetting the system.

This is by no means the only area the Commission has warned of, requesting improvements of the education system, apprentices and youth employment, improvements of which would help to stabilise the economic recovery.