Help to Buy savings account proving a big hit

Property specialist Richard Carr has previously hailed the government’s initiatives to assist first time buyers and is pleased to see people taking advantage of the government’s Help to Buy deposit saving financial product.

250,000 sign ups

Richard Carr First Time Buyers

First time buyers are benefitting from the Help to Buy ISA

The initiative, launched in December 2015, has seen over a quarter of million people open up one of the financial products. Encouragingly, more than half of those signups were made my people aged 30 and under.

The scheme allows savers to be given a maximum of £3,000 by the government to help them purchase their first home. Savers can put away £200 a month into the dedicated ISA with the government topping it up by 25%; the first bonus was paid to savers this week who opened up an account in December.

For couples aiming to save for their first home, individual accounts can be opened which amounts to a potential boost of £6,000.

Other Help to Buy schemes such as the mortgage guarantee and equity loan have also proven popular with over 100,000 home buyers involved.

Help for Londoners

First time buyers in London, who face paying premium prices compared to the national average, can also benefit from a special Help to Buy scheme. It gives first time buyers and second steppers the opportunity to own a new build home in the city with a deposit backed by a 40% equity loan from the government that is interest free for the first five years.

Rohan Sivajoti, advisory services director at eVestor, said. “The upcoming increase in Stamp Duty on second home purchases signals another small victory for those looking to buy their first home, but it is important to take a step back and access how much impact these schemes will actually have.

“With an annual increase of 9% on average house prices across the UK, the worry is that not enough is being done. It’s a simple supply and demand market and supply needs to increase significantly to stop first time buyers being priced out of the market,” he added.