Budget 2015 brings good news for first time buyers

George Osborne recently announced a new way for people to save for the deposit on their first home.

In his latest budget speech, the Chancellor unveiled a new government funded scheme that is designed to help thousands to get onto the housing ladder. The idea is for those who are saving for their first property to open a special Help to Buy ISA to hold their deposit funds.

Once enough cash has been collected and a suitable home found, the money could be accessed and used to pay the deposit. At that stage, the Government would add 25% to the funds already in the account.

The maximum amount the Government will contribute to each buyer is £3,000. This means that a couple saving for a home could both open accounts and accrue the right to £6,000 towards a deposit.

The fact that income tax will no longer have to be paid on interest accrued from savings will also help to increase the pace at which a deposit can be saved, alongside an increase in the tax-free allowance to £11,000 for basic-rate taxpayers.

Architects on the Wirral and in other areas of the UK are waiting to see what impact the new initiative will have on demand for new home construction. Critics of the scheme point out that if more new dwellings are not built, all that will happen is that heightened demand will drive the price of houses up faster. They also claim that only constructing more affordable homes will make a real difference for those who are currently priced out of the market.

Posted by Adam Lloyd
March 26, 2015
New Buildings

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