Which party offers more to first-time buyers?
Over the last few months and weeks we’ve all heard a lot of promises coming from the mouths of the UK’s politicians about how they’re going to help us to have more money. Who you choose to believe could have a big impact on who gets your vote next week, but for one group in particular, who forms the next government could have major repercussions – and that group is first time buyers.
Many young people are trapped in a cycle of expensive rent, unable to save money for a deposit and resigned to never owning their own home. Labour and the Conservatives say that they want to help, but how do their promises stack up?
Back in March of this year, the Conservative coalition issued the final budget of their parliament, spelling out how they would spend our taxes.
One of the most popular things that they promised to introduce was the Help to Buy ISA, a new type of investment especially for people looking to buy their first home. It offers a staggering 25% return on investment, with the government contributing £50 for every £200 that you save.
You’ll only be able to save a maximum of £200 each month, to a total of £12,000 in tax-free savings. After the government’s contribution is added when you cash the sum out to use it as a mortgage deposit, that’s £15,000 – a whopping £3,000 free towards the cost of your house.
This week the Labour Party have taken on the Conservatives, promising that if they get into power they’ll abolish Stamp Duty for first-time buyers buying houses under £300,000.
Stamp Duty is a tax charged in the UK whenever you buy a property that’s worth more than £125,000 – so if you’re buying a house or flat that falls into the lower end of the price bracket, you won’t save much cash. However, if the property you have your eye on is at the top end of the price bracket, you could save as much as £6,000 – much more than you’d get from a Help to Buy ISA.
Which do you think sounds like the better option, and would it influence how you vote?