With the Government rolling out its Help to Buy ISA yesterday, it will no doubt be encouraged by new research from MoneySuperMarket.
The insurance firm has revealed that 63% of prospective property owners plan to utilise these new tax free accounts, in order to help them take their first steps onto the housing ladder.
Help to Buy
Coming into force yesterday, the Help to Buy ISA sees the Government provide an additional £50 on top of every £200 an individual is able to put towards a deposit. This will be capped at £3,000.
What’s more, further insight by MoneySuperMarket showed that 33% of people looking to buy a house in the next five years will definite take out a Help to Buy Isa to help them to save. A further 30% said that they probably would use the scheme. 27% however said that they were still undecided.
Of those looking to take advantage of the scheme, 32% said they would use the money to help secure a deposit. 13% said they would use it to cover the cost of stamp duty, while 10% said it would help towards their legal fees. 15% said it would help them to furnish their new home, while 9% said it would come in very handy with home renovations.
63% of would-be buyers to take advantage of Help to Buy
Encouragingly, 82% of those planning to take advantage of the Help to Buy ISAs believe that it will definitely make them get onto the housing ladder a year earlier than planned. 21% went as far to say that it would help them purchase a property 6 months earlier.
Kevin Mountford, banking expert at MoneySuperMarket, claimed,’ the introduction of the Help to Buy ISA’s for first time buyers is a huge bonus to those wanting to get onto the property ladder. With the Government providing up to £3,000, this could be a substantial chunk towards a first home and could effectively pay the entirety of stamp duty or legal fees, for example.’
‘I am pleased to see that so many people plan to use the initiative to help them buy their first home and with more and more products being launched to take advantage of the new rules, competition is hotting up and consumers will have a wide range of choice when it comes to choosing the best Help to Buy ISA,’ he added.