More help for first time buyers announced in budget

March 19, 2015

New measures announced in the budget will help  first-time buyers who save in a help-to-buy Isa to  have their savings boosted with a payment from the government when they decide to buy a property. The bonus will be equal to 25% of their savings, so for every £200 they save, the government will give them £50.

Once savers are ready to buy a home they will withdraw their savings and receive a government bonus of 25 per cent of the total account balance,the bonus is being offered for each person, not each house, so a couple will be able to get up to £6,000 towards their purchase.

The Government bonus can only be put towards a first home located in the UK with a purchase value up to £450,000 in London and up to £250,000 in all other parts of the UK.

It is anticipated that up to 1.2 million people will take advantage of a government bonus from the scheme.The median price of a first time buyer property in the UK is £148,190 with a median deposit of £25,190.

Since the launch of the Help to Buy: mortgage guarantee, 40,079 mortgages have been completed with the support of the scheme.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

Hertfordshire emerges as strongest performing London commuter county

New research from UK Property Development reveals that while London property prices fell by more than -3% in the past year, prices in some of the capital’s surrounding counties have enjoyed positive growth, none more so than the premium commuter county of Hertfordshire.   In the past year, London’s average house price has fallen by…
Read More →
Estate Agent Talk

Second homes losing appeal among the rich

New Survey Reveals Ongoing Maintenance Is the Biggest Barrier to Second Home Ownership   62% say upkeep and hassle would stop them from buying a second home, even if money were no object   A new survey conducted by luxury co-ownership platform Equity Residences has revealed that the practical realities of owning a second home…
Read More →
Letting Agent Talk

How to build a property portfolio with buy-to-let mortgages

One of the reasons property is such a popular asset choice for investors is that you don’t need to invest all the money yourself; you can leverage funds from the bank. Here’s a very simplistic example of how borrowing via a buy-to-let (BTL) mortgage allows you to multiply your returns versus owning a property all-cash:…
Read More →
Home and Living

2026’s Fastest-Growing Bathroom Trend Is the Wet Room

“Wet rooms have become one of the standout bathroom upgrades of 2026, moving from luxury extra to everyday renovation choice as more homeowners prioritise space, style and easy cleaning. The momentum is only building as spa‑style bathrooms stay in demand.” “Wet rooms used to be a niche request,” says Ant Langston, Marketing Manager at Heat…
Read More →
Home and Living

Homebuyers could cut energy bills by £400 a year

As the energy price cap keeps rising, the latest research from Yopa reveals that buying a new-build home could save homebuyers as much as £450 a year on their energy bills. With the energy price cap forecast to increase again over the coming year, many households are preparing for further pressure on their finances as…
Read More →
Breaking News

Zoopla House Price Index Reaction

The latest index from Zoopla shows that: – First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 – nearly 3x the rate of UK house price growth There are 6% fewer first time buyers in the market than this time last year, but those that…
Read More →