Designed as a cynical piece of electioneering, the Chancellor announces the Help to Buy ISA in his Budget speech. Like most knee-jerk policies, this was intended to attract the maximum amount of media coverage whilst the benefits to first-time buyers will be minimal. As Merryn Somerset-Webb sees it in MoneyWeek: “Handing over free money to compensate for rising house prices” in an “attempt to buy the votes of the young rather than actually help them” – I could not have put it better.
The new Help to Buy ISA accounts (‘Bisa’) are expected to be available from Autumn 2015 until 2019, but once an account is opened there is no limit on how you long you can save for. Under the rules, buyers will be able to pay in an initial £1,000 and then save up to £200 per month. As with existing ISAs, any returns will be free of tax but in addition, for every £200 saved, taxpayers will contribute a further £50, up to a maximum bonus of £3,000 on £12,000 saved. The government 25% contribution bonus only becomes payable when the funds are used to buy a property.
The ‘Bisa’ accounts will be limited to one per person rather than one per home, meaning first-time buyers saving for a deposit for a home will both receive a bonus. So a couple saving towards a first home together could benefit from a potential bonus of up to £6,000 as both savers would be eligible for a £3,000 bonus. The bonus will apply to both the amount a person saves into their Help to Buy ISA and the interest that has built up during the period the account is open. The bonus will be limited to first-time buyers’ home purchases up to £450,000 in London and up to £250,000 outside London. Help to Buy ISAs will only be available to those aged 16 and over.
The Building Research Establishment (BRE) is introducing a national quality mark for new housing that it claims should give home buyers and renters a clear indication of the quality and performance of a new home.
The BRE says it is a “world leading building science centre that generates new knowledge through research. This is used to create products, tools and standards that drive positive change across the built environment.” The BRE claim its ownership structure enables the BRE to be “held as a national asset on behalf of the construction industry and its clients, independent of specific commercial interests.” Allegedly protecting the “impartiality and objectivity of the BRE Group in providing research and guidance.” The BRE Trust is a registered company limited by guarantee and also registered as a charity in England.
A number of stakeholders are currently working with BRE on the development of their Home Quality Mark from its beta testing stage. Of the housebuilders, only Galliford – with its perennial ‘four-star’ HBF-rated Linden subsidiary, ‘minnow’ Cala, and Kier are currently involved at present.
CALA Homes, plan to trial the Mark. Cala Chief Executive Alan Brown said: “Independent benchmarking of new homes is hugely important. For CALA, it provides third party recognition of our commitment to consistently build high quality, sustainable homes. For homeowners, it offers a simple and reliable measure of the energy performance of the property they are buying. We look forward to working with BRE on the new Home Quality Mark.”
The BRE say “the new national quality mark will transform the way consumers choose the homes they buy and rent and will provide house builders with a valuable independent quality mark they can use to highlight the innovative features of their homes and differentiate themselves in the marketplace at a time of rapid growth.”