Millennials missing a trick?
Things got a little bit easier last year for first time buyers wanting to get on the property ladder. But it seems there is another Government give-away that millennials are missing out on
January 11, 2018
Ever since the credit crunch hit and the era of easy credit died a very public death there’s not been an awful lot of confidence when it comes to the housing market. Stories about generation rent, the impossible dream of getting on the property ladder and the struggle facing first time buyers have become regular features in the press. Yet it seems we may have turned a corner, thanks in no small part to a certain Mr Philip Hammond.
Yes, since the chancellor announced in November that Stamp Duty would be scrapped for first time buyers of properties up to £300,000 it seems confidence has soared. According to a new survey by Foresters Friendly Society three in five millennials saving for a deposit now feel confident about achieving their goal thanks to the Stamp Duty exemption.
That’s pretty impressive work by the chancellor when you consider that 16 months ago a survey by housebuilder Barratt Homes revealed one in two 25 to 34-year-olds believed they will never buy a home in their lifetime.
While optimism might be rising there’s a concern that financial proficiency is not. According to the Foresters’ survey just 11% of those people who are eligible to take out a Lifetime ISA to help them save for a deposit have done so – despite the fact the product is pretty much made for first time buyers.
The Lifetime ISA was launched in April 2017 and allows savers to earn a 25% bonus for savings spent on either a deposit for a home or towards a pension income in retirement.
You can save up to £4,000 per year, with a maximum bonus of £32,000. That’s £32,000 free, from the Government. What’s more the bonus is earned annually so you can earn interest on this sum as well as your own savings.
And it’s only open to those aged 18-39 so it’s basically designed for millennials!
If you’re saving to get on the housing ladder you could be missing a trick by not taking out a Lifetime ISA. For more information visit our all-you-need-to-know guide explaining the Lifetime ISA and how it compares to it’s main rival, the Help to Buy ISA.