FINANCIAL MATTERS BUDGET SPECIAL WITH MITCH HOPKINSON: Budget gives hope to first-time house buyers

Mitch Hopkinson
Mitch Hopkinson
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The last few budgets have put forward innovative plans to boost the housing market.

Planning approvals are at a seven-year high.

Though we still don’t build enough homes.

Even if we did, you still have to afford them, and when you save currently you don’t get much added in the way of interest, saving rates are still at rock bottom.

Wednesday’s budget gives much needed help for first time buyers trying hard to save for their first home.

The new Help to buy ISA means that eligible savers can look forward to a 25 per cent boost to their savings when they come to fund their first home.

Wednesday’s budget gives much needed help for first time buyers trying hard to save for their first home.

Mitch Hopkinson

These new accounts will be open for four years, there is no minimum amount to save, the monthly maximum will be £200.

The overall limit will be £12,000 so this should qualify a first time buyer to a whopping 25 per cent or £3,000 added to the plan when it comes to buying a first home. Each saver can have one, so there is a double benefit for a couple who are saving.

You will be able to use the funds for a property with a value up to £450k in London and up to £250k outside the capital.

Sadly, I cannot open one for my children nine and seven, you have to be over 16 to apply.

More good news, the budget announced that it will make it easier for the land bank that is owned by Public Offices such as the Department of Defence and Local Authorities to be freed up to provide more land for new homes. This coupled with the innovative housing zone initiative should encourage more new homes – but we still won’t be building enough to satisfy demand!

Mitch Hopkinson is a managing partner of deVere United Kingdom, part of the deVere Group, one of the world’s largest independent advisers of specialist global financial solutions to international, local mass affluent, and high-net-worth clients, through a network of 71 offices across the world and more than 1,000 staff. It has in excess of 80,000 clients and $10bn under advisement.