Chancellor of the Exchequer George Osborne’s announcement of a Help to Buy ISA is a great boost for first time buyers, says Redrow Homes.
For every £200 an individual saves, the government will put in an extra £50, up to a maximum of £3,000.
The new ISAs, which will be available through banks and building societies, will be launched in the autumn and run for four years – but the chancellor has said people can start saving now and will still benefit.
The Help to Buy ISA will be available on homes up to £450,000 in London and £250,000 outside the capital.
Dave Bexon, Redrow’s Group sales & marketing director, said: “The announcement of a special Help to Buy ISA is further evidence of the importance this government is placing on housebuilding to help lead economic recovery.
“It will be another important tool in helping first time buyers, by tackling the twin problems faced by people saving for their first home – the low interest rates on savings and the high deposits needed by most banks.
“The fact that government will add £3,000 to the funds of those who save £12,000 towards a deposit offers real encouragement to would-be home owners.
“We look forward to sharing more about the Help to Buy ISA with our customers.”