With the Government’s Help to Buy ISAs now launched, new insight from MoneySuperMarket reveals 63% of prospective homeowners plan to take advantage of these new tax free accounts to help get them on the housing ladder.
The new scheme will see the Government provide a £50 top up for every £200 an individual saves (capped at £3,000) towards their first home. The insight by MoneySuperMarket further showed that for 33% of people that plan to buy a house in the next five years, they will definitely be taking out a Help to Buy ISA to help them save, while a further 30% say they probably will.
Nearly a third (27%), however, are still undecided. For those who plan to take advantage of the extra savings boost, 32% plan to put the money towards their deposit, while a further 13% plan to use it to cover the cost of stamp duty. Other planned uses are to cover the cost of legal fees (10%), furnishing their new home (15%) and home renovations (9%).
More than eight in ten (82%) of those who plan to take advantage of the Help to Buy ISAs think that it will help them get on the ladder earlier than planned. Nearly a fifth (19%) think it will help them get on the ladder a year earlier than planned, while a third (34%) said it will enable them to buy their house 3 months earlier than they thought, and 21% say it will help them buy a house six months earlier.