George Osborne has announced the planned budget reforms that could affect future first time buyers. But will the new scheme actually help you realise your dream of owning your own home?
With a proposed new ‘Help to Buy ISA’ for first time buyers, every £200 saved for a home deposit will be topped up with a further £50 by the government.
"The Help to Buy ISA for first time buyers works like this. For every £200 you save for your deposit, the Government will top it up with £50 more. It’s as simple as this – we’ll work hand in hand to help you buy your first home." - George Osborne
What does this mean for first time buyers?
George Osborne said that a 10% deposit on the average first home in the UK costs £15,000. Under the new proposal, if you save up to £12,000, the Government will pay a maximum of £3,000, to help you put down a deposit on your new home.
Under the scheme you can put aside a maximum of £200 per month. The Government bonus will then be released when the property is purchased. Savers will be able to access their savings at any time and withdraw from their ISA account.
This applies to properties worth up to £450,000 in London and £250,000 in the rest of the country.
Will it actually work?
Could this financial scheme help you take your first step on the property ladder? Strata’s CEO, Andrew Weaver, offers us his take on George Osborne’s budget and how it could affect first time buyers.
“The new Help to Buy ISA is fantastic news for first time buyers and will enable home ownership to happen a lot sooner than many people will have expected.
“The majority of our homes are sold to first time buyers and we offer a long term reservation option for those who dream of owning a new home but still need time to save their deposit. The new ISA will complement our scheme perfectly.”
What do you think of the newly announced budget plans? Do you believe there is anything more the Government could be doing to help first time buyers? Let us know on Facebook or Twitter and make sure you read our blog post with further financial information to help you #MAKEITYOURS.