Help to Buy ISA launches

Tuesday 01 December 2015

The new Help to Buy ISA launched last week, with 14 big names providers already signed up to provide the products.

The Help to Buy ISA helps first time buyers to put money aside for that all important first property purchase. They can save up to £200 a month, which the government will then top up by 25%, up to a maximum of £3,000. For couples, this could mean a considerable £6000 towards their first home together.  

Commenting on today’s Help to Buy ISA launch, Mark Hayward, managing director, National Association of Estate Agents (NAEA) said: “The Help to Buy ISA – announced during the Chancellor’s March Budget is a great initiative and will provide a boost to first time buyers (FTBs) hoping to make the climb onto the property ladder. It seems as though FTBs are at the top of the government’s agenda following the further helpful initiatives announced during last week’s Autumn Statement – which means that we might finally begin to see FTBs cutting through the market.

“Although the Help to Buy ISA is a starting point for FTBs and it will help them on the way to raising a deposit – there’s another major reason why FTBs are feeling pushed out of the market. This is the lack of housing, specifically ‘affordable housing’ available to all house buyers - whether that be first time buyers, all the way to last time buyers. In order to help FTBs find their feet in the market in the long-term, the issue of supply needs to be addressed. Osborne’s announcement that he’ll be building 200,000 new-starter-homes is a good place to start, but until the wheels are put into motion, we just won’t see a substantial change for FTBs.”