The CPA’s Noble Francis on George Osborne final budget
It’s easy to be cynical every time there is a Budget, especially a Budget just 50 days before an election, but thechancellor came up with a couple of things that should have a positive boost for the industry.
The housing market has slowed over the last six months and, in response, the chancellor announced the Help to Buy ISA. In the short-term this will act as a confidence boost. Furthermore, in the medium-term, it should directly increase effective demand in the market.
While [the Help to Buy ISA is] not a game changer, it is another in a series of boosts we’ve seen to the housing market over the past couple of years
Under the Help to Buy ISA, for every £200 per month that a potential homeowner saves towards a deposit, the government will give £50 per month up to a maximum of £3,000. It will only be available from Autumn and for homes to a maximum value of £250,000 outside of London and £450,000 in the capital. While not a game changer, it is another in a series of boosts we’ve seen to the housing market over the past couple of years and should encourage potential homeowners and housebuilders that government is willing to do its utmost underpin demand and ensure that the housing market remains relatively buoyant. In the medium-term, once those taking up the scheme have had a chance to build up the deposit, it will enable potential new homeowners who eith