26 Aug

Concerns raised over deposit scheme

Concerns raised over deposit scheme

Concerns have been raised over the government's Help to Buy Isa scheme which was designed to help young people step on to the property ladder for the first time.

When the scheme was launched in 2015, it was expected first-time buyers would be able to save £12,000 and would receive £3,000 to help make up the average deposit level.

However, it has emerged that the scheme does not make any additional payments until the property purchase has been completed - meaning buyers have to find the full amount of deposit anyway.

It was initially thought the scheme could help around 500,000 people, but it is now clear they may have to seek calcification about how to complete their house transaction.

Mark Hayward, managing director of the National Association of Estate Agents, explained: "Consumers have been putting money aside on the basis that they believed it would be applied to their deposit on a new home.

"To now clarify that it is not actually available until completion is the perfect example of a painful lack of transparency and frankly nothing short of deception.

First time buyers are already struggling with getting on to the housing ladder and this much hyped initiative was welcomed at the time as a way of helping them, but in fact could have ended up costing buyers if they have gone ahead with a purchase believing that the bonus counted towards the deposit.”ADNFCR-1222-ID-801824246-ADNFCR

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