The Home Builders Association has joined the Confederation of British Industry and the Building Societies Association in pushing for greater saving incentives for first-time buyers.
The HBF, it its submission to Budget today, is recommending the creation of a FTB savings scheme for new homes, mirroring calls from the Confederation of British Industry this morning for a dedicated Isa for housing deposits.
The submission says: “The basic principle would be to require a potential FTB to save a specified amount, over (at least) a specified time. We envisage lenders would offer some form of financial incentive to qualifying borrowers who meet the savings conditions, should they eventually decide to buy a new home, and home builders in the scheme would offer a special incentive. The Government would also offer an incentive, such as making the savings tax free (perhaps a special ISA, on top of current ISA allowance).”
The HBF’s list of recommendations for the March budget also includes an extension of the NewBuy scheme past March 2015 to 2018 and an extension of the Funding for Lending scheme beyond January 2014.
The stamp duty threshold for first-time buyers should be raised to £200,000, says the HBF.
The HBF has repeated request for FLS funds to be directed into NewBuy and for a loosening of building restrictions, both of which were submitted as part of its recommendations on the Autumn Statement.