Last year's Budget announcements included the introduction
of a 'nicer' ISA (NISA), heralding even more flexibility
for savers. Anything that helps savers save up a deposit for their
first home is always welcome for those in the property business and
in this year's Budget Mr Osborne went one step further,
introducing the Help to Buy ISA.
First time buyers, who are over 16, can now save for their UK
home with the help of the government, if they invest in a Help to
Buy ISA. For every £200 saved per month the government will
add £50. The maximum deposit that can be accumulated in these
ISAs is £15,000, being £12,000 contributed by the saver
plus the £3,000 government bonus.
Accounts need to be opened in the four years from this autumn,
but there is no time limit on saving thereafter. In addition to the
monthly savings above, the prospective purchaser can make an
initial deposit of £1,000. Only one account can be opened per
person, but as this is not a per home limit,
