Budget Reveals New Measures To Help FTBs
The Budget has confirmed that people keen to buy their first home through the best property letting agents Norwich has to offer and elsewhere around the UK will now be able to take advantage of a Help to Buy ISA.
For every £200 people save, the government will contribute £50 for first-time buyers (FTBs) to put towards the cost of their home. Once they’re ready to purchase, savings can be withdrawn and people will then receive a bonus from the government of 25 per cent of their total balance, capped at £3,000.
It is thought that up to 1.2 million people will be able to take advantage of this government bonus, which can only be used to buy a first home in the UK with a purchase value of up to £250,000 in all regions apart from London, which has been allocated a purchase value of up to £450,000.
The Council of Mortgage Lenders welcomed the development, with director-general Paul Smee saying that those saving for a deposit will surely appreciate the support.
“But as saving for a deposit will never become easy, we still need a clear focus on the supply of new housing that will help deliver a sustainable, affordable housing market over the long term,” he added.
This comes after Halifax revealed that FTBs would in fact be £742 better off each year than renters. It was found that the average monthly cost of buying a three-bed house for an FTB was £658 in December 2014, compared with the monthly rent of £720 for a similar home.