Eddie Goldsmith, Chairman of the Conveyancing Association, responds to the 2015 Budget announcement of a new Help to Buy ISA:

“Saving for a deposit is the most challenging part of buying a new home for first time buyers, with over half of them needing help from friends and family to get the money they need.  As property prices have grown exponentially over the last few years that task has become more and more difficult. This has resulted in the number of first time buyers remaining relatively low.

“The news today that they will get more help in saving for a deposit through a new Help to Buy ISA is a welcome development.  The maximum £3000 Bonus will provide much needed financial help to first time buyers and boost their buying potential.  The fact that the new ISA will be linked to individuals rather than homes also means that first time buyers can pool their ISA bonuses.  I’m pleased to see that the policy recognises the realities of trying to get on the ladder in the Capital. 

“However, we must still be mindful that a big challenge to first time buyers will be a rise in mortgage rates, expected later this year.  In a world of higher rates it is going to continue to be difficult for many to access the finance they need.”