One of the key measures announced in this year’s Budget from George Osborne was a specific ISA for first-time buyers, which will see the Government pay £50 for every £200 saved by the home buyer.
This ‘Help to Buy’ ISA will mean that if a first-time buyer can save £12,000 in a tax-free account, the Government will add £3000, and this applies to each person so a couple could potentially receive £6000 towards their first property.
Chancellor George Osborne said this scheme would combine “two of our most successful policies… to tackle two of the biggest challenges facing first-time buyers – the low interest rates when you build up your savings, and the high deposits required by the banks.”
What you need to know...
- The ISA will be available from this Autumn and will be available to anyone over 16 who has never owned a home before.
- Savers can start with a lump-sum deposit of up to £1,000. The minimum savings to qualify for the scheme are £1,600, but there is no monthly minimum investment.
- Money in one of the new accounts can be accessed at any time, but the government payment is only added if and when it is used as a deposit on a home.
- The scheme can be used for deposits on homes costing up to £450,000 in London and up to £250,000 elsewhere in the UK – which account for more than nine in 10 first-time buyer purchases.
- It can be used alongside other government policies such as the help-to-buy interest-free loan scheme or the mortgage guarantee scheme for 95% loans.
The introduction of this scheme is particularly relevant to local housebuilder Conroy Brook and it’s Mayfield Court development in Dodworth, Barnsley.
This select development features just three new homes, with two still available for sale at £224,950, meaning they sit within the scheme’s criteria of a maximum of £250,000.
For more information the Government Help to Buy ISA scheme click here.
To discuss Help to Buy on one of the Conroy Brook Mayfield Court homes contact us.