Latest research suggests that many in UK are still unaware of the assistance available from government for first-time buyers.
41% of people in the UK have a low awareness of the government’s Help to Buy ISA, which launched in December 2015, according to research from Precise Mortgages in conjunction with YouGov. 27% of people surveyed admitted to not knowing much about the ISA, whilst 14% stated they had never even heard of it. A further 13%, despite knowing about it, don’t think it is enough to help people buy homes, and greater government help is needed.
Precise said that, with such little knowledge of the Help to Buy ISA – which is set to last until 2019 – it’s unclear whether the Lifetime ISA will actually reach the people who it could benefit.
This is while 51% still see saving a large enough deposit as the biggest barrier to owning home. This is followed by finding an affordable property (41%) and getting a mortgage approved (33%). Additionally, 37% of UK renters state that they are not currently seeking to purchase a property simply because they can’t save for a deposit.
Alan Cleary, managing director of Precise Mortgages, said: “Barely a month ago, the Chancellor announced the introduction of another initiative to help first time buyers. The Lifetime ISA will see the government gift £1,000 to savers who can put away £4,000 a year. It’s clear from this that the government is trying to support first time buyers up and down the country to access the property ladder.
“However, better communication of the support available is needed – if the message isn’t getting to people it needs to, it follows that some of these people will be missing out on help that could prove vital in helping to get them on the property ladder. More must be done by the government and industry alike to increase the knowledge of these schemes across the board, not just amongst first time buyers, but also those who they turn to for guidance when thinking about saving to purchase their first property.”
