In the 2015 budget, UK Chancellor George Osborne announced a new policy for the UK residential property market called the Help to Buy ISA, which is designed to help first-time buyers get onto the property ladder.

Osborne said that the new ISA wrapper would launch in autumn 2015 and it would allow first-time buyers to save £200 a month from the taxman. The government said that they would give people 25p for every £1 they save in a Help to Buy ISA, up to a maximum of £3,000 for £12,000 stored in the account. The account will have a minimum requirement of £1,000.

As a result of a Tory majority, the Help to Buy ISA will become law immediately. We couldn’t have predicted this. Every poll suggested that there’d be no clear winner on 7 May and the strong surge of the SNP in Scotland indicated that Cameron’s Conservatives might have been locked out of the halls of power all together in favour of a Labour-SNP coalition.

This means that the Conservatives have a clear path to implement their vision for the UK’s property market – both in respect of property ownership, and property investment. In the run-up to the national poll the Tories outlined a number of policies designed to boost the UK’s residential sector including intentions to build 200,000 starter homes in England by 2020 and the Help to Buy ISA.

The Help to Buy ISA in particular has the potential to make the UK’s residential sector a more attractive property investment option. The fact that it’s designed to help people save is likely to persuade more first-time buyers to purchase a home and inject capital into the market.

As an ISA wrapper, the Help to Buy ISA can be a lucrative investment option when property bonds and funds are used within it. This strategy allows investors to capitalise on tax advantages.

I would recommend that investors research any potential in-direct property investment option and choose a regulated product before they commit if they want to reap healthy returns. I would advise investors to use the services of an Independent Financial Adviser (IFA) where property investment products are concerned. An IFA will weigh up their appetite for risk against their expectations concerning yield to show them the right financial product for their circumstances.

I’d also advise those thinking of investing in property to read the free guide to property investing in 2015 before making up their mind on how to invest.

This guide was written by Simon Morris, founder of Morris Properties, to provide private and commercial investors with the information they need to ensure they are making the right enquiries before they take out any financial product.

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