If the Chancellor’s Budget in 2014 was one for pensioners, there’s little room to disagree with the impact that George Osborne’s final Budget before the election could have on first time buyers. The announcement of increases to personal savings allowances, and the introduction of a ‘Help to Buy ISA’ have enjoyed the lion’s share of post-Budget debate, but what in reality does this mean to the hopeful first time buyer in Harrow and North London?

First and foremost, anything that is intended as a means to support first time buyers should be welcomed as a step in the right direction. The new ISA being introduced will essentially equate to the government ‘topping up’ savings of £12,000 by an additional £3,000 to provide purchasers with a £15,000 deposit. For some, the impact that this will make can’t be underestimated and it is thought that that up to 1.2 million consumers could benefit.

The finer detail, however, that outlines that savings of £200 per month will be supplemented by a further £50 would mean that a first time buyer starting to save today would still take five years to save enough, by which point average house prices are likely to have increased further. Even if you have already saved a significant figure, when the new ISA launches in the Autumn, you’ll only be able to deposit a maximum of £1,000 followed by monthly payments of up to £200 so this isn’t going to change the fate of the first time buyer overnight and the earliest you’ll be able to get your hands on the ‘free’ cash from the government is some time in 2020.

All that said, the Budget should still be viewed positively for many first time buyers. If you’re part of a couple, you’ll both be able to open one of the new ISAs, giving you a final ‘bonus’ of £6,000 and therefore a total deposit of £30,000 to put towards your home – assuming you’re able to afford to save that amount of course! Added to that, interest will accrue on this new ISA in the same way as it does on any other so there’s the potential, once interest rates start to creep back up, to end up with a significantly larger deposit than the joint £30,000.

There also remains the option to save money in a non-ISA account and under the new personal allowance limits announced in the Budget, this can amount to £1000 per year, and as a well-known retailer says, ‘every little helps’.

We’d of course advise you to take the advice of an independent mortgage advisor and look forward to supporting you in your search. You’re welcome to visit any of our branches or check out our available properties online at: www.andrewsonline.co.uk