You are here: Home - Mortgages - First Time Buyer - News -

First-time buyers receive £50m government bonus

0
Written by: Paloma Kubiak
22/06/2017
New homeowners have received more than £50m from the Government's Help to Buy ISA scheme.

Official statistics from HM Treasury reveal more than 62,000 property completions have been supported by the Help to Buy ISA scheme since it was launched in December 2015.

The Help to Buy ISA is available from a number of banks, building societies and credit unions and allows savers to deposit a maximum £12,000 to receive a 25% government bonus (maximum £3,000). See YourMoney.com’s Help to Buy ISA guide for more information.

To date, more than 86,000 bonuses have been paid out by the government, totalling £54m. The average bonus paid is £625.

The mean value of property purchased through the scheme is £170,000 compared to an average first-time buyer house price of £182,000 and a national average house price of £216,000.

First-time buyers through the scheme also tend to be younger than the average first-time buyer – the media age is 27 via a national first-time buyer median age of 30.

The statistics also reveal that the highest proportion of property completions are in the North West, Yorkshire and The Humber, and South West, with a lower proportion in the North East and Northern Ireland.

However, the figures don’t include those who have an existing Help to Buy ISA who are yet to claim a bonus for their house purchase.

The other government scheme to help young people on the property ladder is via the Lifetime ISA. An investment version is offered by Hargreaves Lansdown, Nutmeg and The Share Centre, while a cash version is offered by Skipton Building Society. Foresters Friendly has also launched a With Profits LISA. See YourMoney.com’s Should I transfer my Help to Buy ISA to the Lifetime ISA? for further details.

Danny Cox, chartered financial planner at Hargreaves Lansdown, said: “Help to Buy is proving to be a popular warm up act for the Lifetime ISA, reducing the time it takes for first time buyers to take that all important step onto the property ladder. Transferring a HTB ISA to a Lifetime ISA makes sense for all but those who are planning to buy over the next 12 months, as the Lifetime ISA has higher contribution limits and for those who have time on their side, offers the option to invest to beat cash returns.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
euros
The cheapest summer holiday destinations revealed

Brits planning a summer holiday could do well to consider the Czech Republic or Morocco, revealed as the cheapest destinations...

Close