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Rising house prices threaten to negate Help to Buy ISAs

Rising house prices

Rising house prices threaten to negate the Help to Buy ISA scheme set up on 1 December 2015 to help first-time buyers save up to buy their first home; as the average house prices threaten to exceed the £250,000 maximum property worth (or up to £450,000 in London) allowed under the scheme.

Since the start of the Help to Buy ISAs, nearly 500,000 properties have been bought, with £67 million from the Government. The average first-time buyer has received £1,115 on a scheme where the maximum payout is £3,000, from a maximum investment of £12,000.

Although the scheme closed to any new savers on 30 November 2019 those savers who have already set up their accounts can continue to pay into them until 30 November 2029.

When the scheme launched back in 2015 the average first-time buyer property was £175,000, but the average house price has now risen to £225,000, threatening the viability of this product that some first-time buyers have been investing in for many years. It would be a good idea if the Government could reconsider the maximum worth of property for those people still using the scheme until it expires in 8 years -time to come into line with the maximum worth under their new scheme LISA.

LISA, the Lifetime ISA, is the latest Government scheme that allows buyers to buy a property worth up to £450,000. If you would like more information on this or an assessment on your current savings in the Help to Buy Isa then why not get in touch with your local team of financial experts Enable Independent. We will be able to review your individual needs and give you the best advice to enable you to buy your first property.

Your home could be at risk if you do not keep up the repayments.

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