The Treasury has unveiled details about the new Help to Buy Isa, which will be available from the autumn, in a one-page factsheet.
In March, chancellor George Osborne announced the launch of a new Help to Buy Isa. With this scheme, the government will boost savings by 25 per cent.
The Treasury has now revealed the new accounts will be available for four years and once they have opened there is no limit on how long people can save for. Savers can make an initial deposit of £1,000 when the account is opened, in addition to normal monthly savings.
There is no minimum monthly deposit, however the accounts will give first-time buyers that save up to £200 a month towards their first home an uplift of £50 within the tax-relieved environment.
The accounts are limited to one per person rather than one per home, which enables those buying together to receive a bonus each.
The minimum bonus size is £400 per person, with the maximum being £3,000 per person. The bonus will be paid available on home purchases of up to £450,000 in London and up to £250,000 outside London and will be paid when a first home is bought.
It is only available to individuals who are 16 and over who are first-time buyers purchasing UK properties.
The accounts will be available through banks and building societies from autumn 2015.
donia.o’loughlin@ft.com
