Responding to the new Help to Buy ISA, introduced by Chancellor George Osborne in his budget statement, Faisal Choudhry of Savills ‘Head of Research in Scotland, says: ‘The Chancellor’s statement on Help to Buy ISA is good news for Scotland’s property market, which was already poised for greater growth than any of the UK regions.
‘It is a further attempt to keep alive the aspiration of home ownership and help first time buyers overcome the deposit constraints that have been the biggest barrier faced since the credit crunch.
‘While it will be welcomed by prospective first time buyers, limiting the ISA to a £12,000 savings plan with a £3,000 government contribution should prevent a surge in house prices. It is more likely to help get buyers over the deposit hurdle in Scotland rather than in London and the South East, where significant constraints remain.
‘It is also likely to be welcomed by parents and grandparents. First time buyers may be less dependent on the bank of Mum and Dad who may be more inclined to contribute some top up savings when children come looking for assistance to get on the housing ladder.
‘However, those first time buyers who are keen to lock into low interest rates and who have access to parental support are unlikely to commit to what is effectively a five year savings plan.’
