The ship for Help To Buy ISAs may have set sail in November 2019, however there are still plenty of Tamesiders who were able to open one beforehand and get their foot on the property ladder.
Throughout 2019, money saving expert Martin Lewis was persistent in encouraging young, first-time buyers to open a Help-To-Buy ISA with their bank.
The Help-To-Buy ISA was a government backed scheme designed to help first-time buyers save for a mortgage deposit to buy a home. In order to qualify, account holders needed to be officially classified as a first-time buyer and mustn’t have owned a property anywhere on the planet.
Applications closed at the end of November, but those who were able to open one prior to the deadline are still able to contribute to the account and receive further funding from the government.
Savings made into this account are tax free, with the government topping up any contributions made by the account holder by 25%. For example, a £200 deposit into this account would see the government contribute an additional £50; meaning a maximum of £3,000.00 can be paid by the government.
As it turns out, many Tamesiders were able to open a Help-To-Buy ISA well before the deadline was enforced.
A total of 1,232 properties in the borough have been purchased over the last five years with contributions from Help-To-Buy ISAs.
What’s even more impressive is the total combined value of these properties; £177,907,390. For that price, you would be able to buy the 20 most expensive properties in Tameside currently on the market and still have over £160,000,000 to play with.
So where in Tameside have these first-time buyers been purchasing their Help-To-Buy assisted properties?
My research shows that the majority of these properties have been bought in the Audenshaw, Denton and Droylsden postcodes of Tameside; with a total of £48,555,750.00 being spent across 322 properties.
Hyde follows not far behind, with £43,912,160.00 of property being purchased under the aid of Help-To-Buy across 294 properties. Areas such as Dane Bank on the other hand in the SK5 postcode have seen the least amount of properties bought with Help-To-Buy contributions – with only £469,950.00 being spent across a grand total of 5 properties.
With the active encouragement from Martin Lewis prior the application closures for the accounts, it will be interesting to see whether or not this overall sum increases over the next period and what results this will show for the health of the Tameside property market.
If you’d like to know any more information relating to the Tameside property market, or are looking to invest in property in the borough, I’m always more than happy to have a chat over the phone or a coffee. Drop me a line on 07709 505 442!