- For every £200 saved by FTBs the Government will contribute £50
- The total contribution from the Government will reach £3,000
- An individual who saves £12,000 will have £15,000 for spending on a first home
- 10% deposit on the average first home = Deposit of £15,000
- Maximum saving of £200 per month = £2,400 per year
George Osborne, yesterday delivered a budget that gave a big boost to First Time Buyers outside of London and the South East. In a speech full of rhetoric, rhyme and remuneration Osborne hammered home the message of moving from “austerity to prosperity” and rewarded youthful voters with a Help To Buy ISA worth 25% of any savings made.
Savers who are not on the property ladder yet will be able to receive a contribution of up to £3,000 from the government to put towards a deposit on a house purchase. With an average nationwide house price for first time buyers of £150,000 this represents 25% of the deposit and is a huge reward for a generation who need all the help they can get.
Will Clark, MRICS, Director of SellMyHome.co.uk:
“We are delighted to see that the Help to Buy Generation are receiving this positive attention from their Government as it is this cohort that are driving the UK economy out of the doldrums. There is a lot of responsibility on the 27-35 year olds in the UK and the Help to Buy ISA is a great tool to get this generation onto the property ladder.“
“However, for those in London and the South East, although the £3,000 is a welcome reward, when push comes to shove it is a drop in the ocean when average house prices in London are over £500,000.”
“If housing supply remains unable to keep up with rising demand, the South East and London will be an area where First Time Buyers will continue to rely on external sources of financing such as the bank of mum and dad, or else be unable to make the move from renting to owning.”