First-time buyers given Budget boost - Palmers Solicitors

First-time buyers given Budget boost

First-time buyers have been given a helping hand to start climbing the property ladder in the 2015 Budget.

In his Budget speech on 18 March, Chancellor George Osborne unveiled a new Help to Buy ISA scheme to provide a bonus on savings used to buy a first home.

For every £200 a first-time buyer saves, the government will provide a £50 bonus, up to a maximum of £3,000 on £12,000 of savings.

The bonus will be available on homes valued at up to £450,000 in London and up to £250,000 outside London.

Mr Osborne described the Help to Buy ISA as “effectively a tax cut for first-time buyers”.

Accounts will be available through banks and building societies from autumn 2015 and the new accounts will be available for four years, although once an account has been opened, there will be no limit on how long someone can save for.

There will be no minimum monthly deposit but the saver can deposit up to £200 each month. The accounts are limited to one per person so people buying together can each benefit from the bonus.

Reaction to the Help to Buy ISA has been mixed, with some commentators saying more action was also needed to increase the supply of housing.

However, Mark Hayward, managing director of the National Association of Estate Agents, said: “This initiative will provide a significant boost to the ability of a first-time buyer to save speedily and effectively. It especially benefits couples who are buying for the first time as both are eligible to open a Help to Buy ISA, which potentially means £6,000 from the government.”

Clare Butcher, an associate solicitor at Palmers specialising in residential property, said: “While many first-time buyers will welcome the Help to Buy ISA, rising property prices and higher rents mean that many will be on tight budgets and looking for legal advisors who can provide fast, efficient legal services that deliver real value for money.

“At Palmers, we are experienced in residential property issues and our expertise in this area can help to help resolve difficulties and avoid costly delays. For more information, please contact our Property team.”