committed to helping people buy their first home. One way in which it assists is through the Help to Buy ISA, which gives savers a 25% government-paid bonus of up to £3,000.
Via its Help to Buy: ISA scheme Quarterly Statistics report published on June 30, 2016, the government has released figures about the new ISA showing that half a million people have enrolled in these ISAs, and nearly 1,500 of them have been used by first-time buyers to purchase houses.
First time buyers paid on average £163,821 for their new home. This is below the average national price of £292,000.
The new ISAs are helping housebuilders too. Peter Andrews of the Home Builders Federation said:
“The various Help to Buy schemes are really making a difference, helping people to save for and buy a new build home and so driving demand, and in turn housing supply.”
The Help to Buy ISA is available until November 30, 2019. The Lifetime ISA launches in April 2017 and will replace the Help to Buy ISA. This new ISA can either be used towards buying a house or used as extra retirement savings.
The government figures show that Help to Buy ISAs appeal to savers. Mortgage lenders and insurance companies support the ISA because they attract future buyers who will need a mortgage, as well as mortgage protection cover insurance.