Help to Buy ISA rendered useless as house prices soar

Help to Buy ISA rendered useless as house prices soar

As asking prices for houses in England and Wales rise to a record high, prospective first time buyers who have carefully saved their deposits in Help to Buy ISAs are finding themselves priced out of the market. With the maximum threshold on houses that can be bought under the scheme set at £250,000 for homes outside London, and £450,000 in London, prices of two and three bedroom homes are rising above this cap in more and more areas. Research has shown that just one in ten three bedroom homes in London have an asking price that actually qualifies for the scheme.

The rise in price for starter homes will leave millions trapped in rented accommodation unable to afford to save enough for the substantial deposit needed. As the ISA bonus scheme was set up to aid first time buyers save for their deposit, this outcome is exactly the situation that the government was trying to eliminate. The Help to Buy ISA has previously been criticised as a quick fix solution that will only benefit those who are already better off, but more houses in general are needed throughout the country, especially ones that are affordable to those on an ordinary wage.

The average asking price for homes in England and Wales is currently 5.5% higher than this time last year, coming in at £310,471. As the referendum also makes for an uncertain future in the housing market, Help to Buy ISA holders can only hope house prices will soon settle in a region that fits the conditions that will allow them to claim their bonuses.

As a provider of an extensive range of Residential and Commercial searches and reports, LegalinX-7Side has already served Conveyancers in thousands of first time buyer transactions. Our user friendly conveyancing platform makes the search ordering process quick and simple, while our experienced Property Team are available for support and assistance. Contact us today on 0800 975 8080 or email [email protected] to find out more about the Residential and Commercial Conveyancing services we provide.

This article was submitted to be published by Legalinx-7Side as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

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