More companies have committed to the Help to Buy ISA scheme, the Chancellor has announced, as we get closer to the launch of the scheme on the 01 December.
HSBC Aldermore, Newcastle Building Society and Clydesdale Bank have all agreed to offer the ISA scheme that Chancellor George Osborne has created to help first time buyers.
The new housing scheme will help people who want to be first time buyers to save up enough cash for a deposit by contributing government money. The government will top up as much as 25 per cent of the savings made by the hopeful first time buyer.
“First-time buyers play a vital role in the UK housing market and our own research shows there is a real appetite for the new Help to Buy ISA,” said the managing director of savings at Aldermore, Simon Healy.
Indeed, the market is so lacking for affordable homes that first time buyers can feasibly purchase that people have been queueing overnight in the hopes of getting a deal that they will be able to help them get onto the property ladder.
Another recent report has claimed that in order to be able to have any chance of purchasing a home by themselves, a first time buyer would need an annual income of almost £50,000, according to Savills Residential Research.
This is bad news for first time buyers who will struggle to earn this much money by the time they want to move out of their parents’ house.
Schemes like the Help to Buy ISA will help people to get together enough cash to pay for a deposit, but with demand for homes far out stripping supply, the future isn’t very hopeful for young people to ever purchase their first home.