A new survey has revealed that six out of 10 prospective homeowners are planning to take advantage of the government’s new Help to Buy ISAs.
According to MoneySuperMarket, 63% of people who are looking to get on the housing ladder will take advantage of the new tax free scheme which launches today.
The survey also revealed that more than eight in ten (82%) of those looking to take out a Help to Buy ISA think it will help them get a property earlier than planned.
As part of the new scheme, the government will provide a £50 top up for every £200 first-time buyers put towards their first home, up to a maximum of £3,000.
MoneySuperMarket found that 33% of people planning to buy a house in the next five years will definitely be taking out a Help to Buy ISA to, while a further 30% they probably will. Nearly a third (27%) remain undecided.
Kevin Mountford, banking expert at MoneySuperMarket said: “The introduction of Help to Buy ISAs for first time buyers is a huge bonus to those wanting to get on the property ladder. With the Government providing up to £3,000, this could be a substantial chunk towards a first home, and could effectively pay the entirety of stamp duty or legal fees, for example.”
For those who plan to take advantage of the extra savings boost, 32% plan to put the money towards their deposit, while a further 13% plan to use it to cover the cost of stamp duty. Other planned uses are to cover the cost of legal fees, furnishing their new home and home renovations.
One in five (19%) think it will help them get on the ladder a year earlier than planned, while a third (34%) said it will enable them to buy their house three months earlier than they thought.
“I am pleased to see that so many people plan to use the initiative to help them buy their first home, and with more and more products being launched to take advantage of the new rules, competition is hotting up and consumers will have a wide range of choice when it comes to choosing the best Help to Buy ISA,” said Mountford.
