First-time property purchasers saving for a deposit will be given a 25 per cent financial top up from the Government, George Osborne (right)  announced in last week’s Budget statement, much to the delight of many property professionals.

Many industry experts are pleased that the Chancellor has recognised the need to provide yet more support for homebuyers by announcing the launch of a Help to Buy ISA later this year.

Whilst the operational details still need to be finalised, in principle the scheme will provide an important financial incentive for first-time buyers, helping many people achieve the goal of owning their own home.

“Combined with the extension of Help to Buy and measures introduced in the Autumn statement to reform Stamp Duty Land Tax with a fairer system, this should provide further positive stimulus for the wider housing market,” said Chris Endsor, Chief Executive of Miller Homes.

Nicholas Leeming (left), Chairman of Jackson-Stops & Staff, with 44 offices nationwide, also welcomed the announcement of a new Help to Buy ISA in last week’s Budget.

He commented, “Any help to incentivise the young to save money and enable them to get on the property ladder has to be welcomed. We look forward to seeing more detail on this as it emerges.”

Around 83,000 households have so far purchased a home through the Help to Buy scheme and there is no doubt it has had a positive, “if modest”, impact on transaction volumes over the last two to three years, according to Liam Bailey (right), Global Head of Research at Knight Frank.

He said, “The new Help to Buy ISA is likely to be another support for first-time buyers. However, we do not expect the impact to lead to a substantial number of new transactions, and is very unlikely to influence pricing in the market.”

Describing the policy as a “crowd-pleasing move”, Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), said, “first-time buyers will welcome the measure, but in many cases, their next step will be to ask which of the many schemes and incentives on offer is the best suited to their needs?”

Adam Challis, Head of Residential Research at JLL, believes that housing remains a “low priority” for Government, as reflected by the pre-Election Budget statement, as it is not a part of the “winning election ticket.”

He said, “No party has a clear plan either on how to boost housing supply for the long-term – we need cross-party solutions to drive supply and an end to the politicisation of homeownership. With build rates at barely half current need the long terms solutions for the supply crisis are more important now than ever.

“The Help to Buy ISA for first time buyers can only be seen as a positive step, encouraging prudent saving at a time when savings rates available for building a deposit are currently very poor. High house price growth means savings still won’t keep up with deposit requirements. This measure is unlikely to have a significant impact on broader house price growth.”

News of the First-Time Buyer ISA announced in the 2015 Budget is not as radical as it may initially seem, according to Richard Donnell (left), Research Director at residential property analysts Hometrack.

“Intended to help young first time buyers build up a deposit to buy a home in the next few years, rather than those who are close to saving a full deposit and seeking a quick tax gain, the scheme will have greatest impact outside of London and the South East,” said Bailey.

He added, “While the incentive offers an overall boost to first time buyers, the market impact will be limited and spread out over time. A maximum bonus of £3,000 limits Government support to deposits of £15,000, which is enough to buy a £150,000 property with a 10 per cent deposit or £300,000 for a couple who are both using the ISA. As with all Government support for housing, it is aimed at reaching the parts of the market that are lower value and where demand has been generally weaker.”

Aside from a new Help-To-Buy ISA savings account, there was some other headline housing-related measures announced in last week’s Budget statement. These included the confirmed introduction of 20 housing zones across the UK, the extension of eight enterprise zones and creation of two more (in Plymouth and Blackpool), new funding for the London Land Commission to help boost housing supply, as well as greater planning powers for the London Mayor Boris Johnson over 50 riverside wharves currently operated by Whitehall, also designed to increase house building in London.