Regional housing markets are set to benefit from the Help to Buy ISA, a pre-election handout for first-time buyers unveiled by chancellor George Osborne in the Budget.
Under the scheme, savers can deposit up to £200 per month into the ISA, which the government will match with 25p for every £1 up to a total “bonus” of £3,000 for a £12,000 deposit.
Savills’ analysis of the policy’s impact highlighted the likely lift it would give Northern Ireland, the North and Wales, and its limited impact in high-value markets such as London (see table).
Savills’ residential research director Lucian Cook said: “This is unlikely to cause a surge in prices but it should benefit several regional markets.”
The government’s analysis estimates the scheme will cost the exchequer £835m per year in 2019-20.
Savills found the maximum government ‘bonus’ of up to £3,000 would account for 21% of the total average first-time buyer deposit in Northern Ireland, but just 4% in London.
