But he denied that the country was witnessing a short-term housing boom.
The Chancellor said there was a broad-based recovery in its early stages, saying: "Although things are looking up, we mustn't let up."
Denying the recovery was a short-term asset-led boom based on rising house prices, he added: "We've got to go on doing the things necessary to fix what went wrong in our economy, and this government's got an economic plan to do that."
Asked whether three more promised years of zero interest rates would not simply fuel a housing bubble, Mr Osborne said: "Outside the centre of London... there is not some housing boom or some dramatic increases in house prices. There are many thousands of families who can't begin to afford the mortgage deposits that are required to buy a house.
"They aspire to own their own home - that's a noble aspiration - and I want to help them. Our Help to Buy scheme is helping people get their homes."
He stressed the Coalition's approach to the recovery was to avoid a situation where Britain was wholly dependent on the City of London, and where everything that was happening was in the centre of London.
He added: "I'm absolutely determined all parts of the country and all sections of society benefit from this and we have a lasting and sustainable economic recovery, and we don't make the mistakes that got us into this mess in the first place."
But Sam Bowman of the Adam Smith Institute think-tank, said: "It is crazy for the Government to stoke demand even more without addressing supply, and claim that this will help the housing market."
Subsidised handouts for homebuyers would only drive prices up further, risk a bubble, improve access for a select few but make housing even more unaffordable for most people, he said.
A UK Government spokesman said: "Home ownership is now at its most affordable for six years. This Government's package of measures to boost both supply and demand in the housing market is working."