The National Association of Estate Agents (NAEA) has joined the choir of well wishers to the new Help to Buy: ISA scheme announced by Chancellor George Osborne in his budget speech today.
First-time buyers who decide to use the scheme to save up for a deposit will receive a government bonus, corresponding to 25 per cent of the amount saved.
The maximum monthly amount savers can put in their Help to Buy: ISA is £200. The government will add £50 to that. The maximum government contribution will be £3,000 on savings of £12,000.
Commenting on the Help to Buy: ISA announcement , Mark Hayward, managing director of the NAEA, said:
“This initiative will provide a significant boost to the ability of a first time buyer to save speedily and effectively. This is exactly what is needed to engage the first time buyer market, particularly as we have seen the current criteria under the MMR constraining aspirations to buy a home. It especially benefits couples who are buying for the first time as both are eligible to open a Help to Buy: ISA which potentially means £6000 from the Government bonus towards a new home. It is also timely, considering house price inflation out paces wage inflation, so this additional boost to first time buyers savings pots will help them at least keep apace rather than fall behind the inflationary curve.”
Read more details about the new addition to the Help to Buy scheme in our story, giving the details about rules and requirements for opening and saving into a Help to Buy ISA.
Full details about the new scheme are available online in the HM Treasury’s outline of the scheme.
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