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

Breaking News

Mortgage approvals up in February

The latest mortgage approval data from the Bank of England show that: –   Mortgage approvals on house purchases for February sat at 62,584 up (3.9%) from 60,246 seen in January. Approvals are down (-3.9%) when compared to the 65,114 seen in February 2025. This annual decline was expected due to wider market slowdown and economic…
Read More →
Breaking News

Pain for landlords as buy-to-let borrowing costs soar

Buy-to-let fixed mortgage rates are soaring due to unrest in the Middle East, according to Moneyfactscompare.co.uk. Landlords also face further financial challenges over the next few years, to meet new private rental rules. Average buy-to-let fixed rates over a two- or five-year term have risen since the start of March 2026. The two-year rate is…
Read More →
Breaking News

Breaking Property News 26/3/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   Average house prices in England are 7.6 times the median average salary The house-price-to-salary ratios in England continue to see a gradual decline post Covid-19 spike Following today’s release of the ONS Housing Affordability in England and Wales: 2025 data confirming that median average…
Read More →
Breaking News

Households facing £114 council tax increase

The latest research from eXp UK shows that the average household could see their council tax increase by £114 over the next year following increases of up to £986 over the past ten years. At the beginning of April, the majority of local councils are expected to put council tax up by 4.99% – the…
Read More →
Breaking News

UK House Price Index for January 2025

The latest index shows that: The average monthly rate of house price growth in January was -0.3%. Average UK house price annual inflation was 1.3% in the 12 months to January 2025. As a result, the average UK house price currently sits at £268,000.   Here are some thoughts from the Industry.   Damien Jefferies,…
Read More →
Breaking News

Exchange time reaches 135 days

Property transactions slow as exchange time reaches 135 days — up 45% on 2019 The time it takes to exchange contracts has risen to 135 days — 45% longer than in 2019 and 3% higher than last year — despite a drop in property transactions year-on-year, it emerged today. Novus Strategy, the transformation consultancy for…
Read More →