The first step-up for house-buyers is the highest


Category: Housing & property & Uncategorized

These were the average (median) levels of deposit by first-time buyers across all regions within the UK, in 2014.

Northern Ireland – £14,600
Northern England-  £16,400
Yorkshire & Humberside – £17,500
Wales – £17,600
North West England – £18,000
East Midlands – £18,700
West Midlands – £19,800
Scotland – £20,100
UK overall – £25,200
East Anglia – £26,200
England overall – £26,600
South West – £30,000
South East – £32,100
Greater London – £69,600

Recognising that increased deposit requirements has left many hardworking households unable to get onto the housing ladder, the government introduced the Help to Buy scheme in 2013 – so far supporting 83,000 people in realising their dream of home ownership. Now the government has announced a further expansion of the Help to Buy scheme with the ‘Help to Buy ISA’.

This product will be available through banks and building societies. It is designed to reward people that are working hard to save up for their first home. First time buyers that choose to save through a Help to Buy ISA will receive a government bonus to help them make the critical first step onto the housing ladder. The bonus will represent 25% of the amount saved so, for the maximum monthly saving of £200, the government will contribute £50, with a maximum government contribution of £3,000 on £12,000 of savings. A substantial subsidy if you are a first-time buyer outside Greater London!

The bonus will be calculated and paid when you buy your first home. For basic rate taxpayers, this will be equivalent to saving completely free of tax for their first home. Accounts are limited to one per person rather than one per home so those buying together can both receive a bonus. The government aims to provide a scheme that offers a tax-free government bonus to help people who are saving up to buy a first home worth up to £450,000 in London or £250,000 anywhere else in the UK. Accounts can be opened for a period of 4 years from the start date of the scheme, which is expected to be in Autumn 2015.

Sources: www.cml.org.uk; (Article: 2015/03/18) www.gov.uk.

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