Helping first time buyers onto the property ladder
Originally published by UK Liberal Democrats
New measures to help first-time buyers onto the property ladder have been confirmed in the Budget.
People looking to buy their first home will be able to save up to £200 per month into a Help to Buy ISA.
For every £200 saved the Government will contribute £50 (or 25 per cent of the amount saved) to the cost of a first home.
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. This government bonus will be capped at a total of £3,000.
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.
There were 311,500 first time buyers in 2014.
This rises to £282,130 price for a first time buyer in London with a median deposit of £69,630. Annual house price growth for the UK in 2014 was 11.6 per cent.
Since the launch of the Help to Buy: mortgage guarantee, 40,079 mortgages have been completed with the support of the scheme.