The policy advisor for the House Builders Association responds to our Budget coverage

Osborne

The chancellor threw a lifeline to first-time buyers with the announcement of the Help to Buy ISA during the last Budget before the general election (Budget 2015: New housing zones and help-to-buy ISA, 18 March 2015, www.building.co.uk). The Help to Buy ISA will allow first-time buyers to save for a home. For every 拢200 saved, the government will provide a bonus of 拢50. The Help to Buy equity loan which provides help with the deposit on a new home, is due to end in 2020. This savings scheme gives a higher rate of return than current savings options and gives first-time buyers a few years to save before the current scheme runs out.

Accounts are available to individuals, rather than to properties. So, two people saving for a home may each have an account and collect the bonus when they purchase a home. The bonus is available on properties valued up to 拢450,000 in London and up to 拢250,000 elsewhere.

Not only are first-time buyers the lifeblood of the industry but for every pound spent on construction, there is 拢2.84 of economic activity. Also, for every property built, two jobs are created, so this has the potential to benefit more than first-time buyers.

Rico Wojtulewicz, policy advisor for the House Builders Association, via email

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