Positive News for First Time Buyers
“The budget announcement may not tick all boxes for everyone but it certainly unveiled positive news for first time buyers,” said our very own, Ian Bythell.
As Relocation Agent Network members, Petty’s are confident in the impact the news and impending changes will have across the East Lancashire property market.
George Osborne, Chancellor announced the launch of a new ‘Help to Buy ISA’ account that will be made available through banks and building societies this Autumn and will see first-time buyers receive up to 3,000 to help them get on to the housing ladder through a new individual savings account.
The scheme amounts to a 25 per cent subsidy for first-time buyers, who will receive 50 for every 200 they save for a deposit.
The new ISA would 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, said George Osborne, Chancellor.
Ian explained in more detail saying: “New ISA’s can be opened under the scheme for four years from this autumn. The maximum initial deposit will be 1,000, with maximum monthly deposits of 200 meaning it would take savers four and a half years to build up 15,000, or a 10 per cent deposit on the average British home.”
The bonus is available for houses worth up to 250,000 in East Lancashire. They are limited to one per person, rather than one per home, so couples buying together may each receive the bonus.