Why The New Help To Buy ISA Is A Long Term Winner
What’s not to like about the government giving you £3,000 to help you buy your first home?
For every £100 that a first time buyer saves (up to £12,000), the government adds another £25 – giving the buyer a £15,000 deposit for a home worth up to £250,000 (£450,000 in London).
Great! And there are other reasons that experienced conveyancing solicitors like us are giving Help To Buy ISAs a nod of respect.
They are no short term gimmick. Clearly it will take first timers a long time to save £12,000. The government has not set a time limit on the scheme.
This time factor is less likely to cause a panic. There is unlikely to be a sudden flood of investment that could push up demand (and therefore prices) and defeat the object of the exercise.
Nor are Buy To Let ISAs simply replacing the Bank of Mum and Dad with the Bank of Taxpayer. The reality is that cash-strapped youngsters will still have to rely on generous parents to help them save.
Would Buy To Let ISAs have been announced in the Budget if we were not just weeks away from an election? No comment, other than to note that they’ll be launched in the autumn – after polling day.
However, it’s worth remembering how important first time buyers are to the market – and not just in places such as Bournemouth, Poole, Christchurch and Wimborne where they’re fairly active.
First time buyers are the vital new blood that enables first time vendors to move up the chain. Without them, the housing market would inevitably suffer.
If you thought moving house was stressful, try not being able to move house when you really, really need to.
Actually, the process doesn’t need to be stressful – not when Coles Miller is on the case. We make moving house much easier.
Need expert help with conveyancing? Contact Coles Miller Partner Jason Barnett, 01202 293226.