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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • RT @NRLAssociation: Coverage in @YourMoneyUK of new research for the NRLA. In an independent poll of tenants, the vast majority said they a…
  • RT @NRLAssociation: Coverage in @YourMoneyUK of new research for the NRLA. In an independent poll of tenants, the vast majority said they a…
  • RT @StepChange: "Our research found an estimated 590,000 people have fallen into rent arrears due to the pandemic... It’s not right that th…

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