News: FTBs seek solace in STB schemes

Wed, 16 May 07

First-time buyers could benefit from save-to-buy schemes offered by their employers, Buy Association has claimed...

For many young people, particularly those with the burden of a student loan, saving for a deposit on a first home seems an unachievable target, the company explained.

However, save-to-buy schemes allow employees to put between three and six per cent of their salary into a fund allowing them to pay the deposit on their first home, with the employer sometimes contributing to or even matching their total savings.

Kate Hamilton, homes & property editor for Buy Association said the scheme was particularly helpful for young people moving to London.

"Save to buy schemes help especially in London and the south east where, even though you have London weighting, salaries are just not proportionate to how much more expensive property is," she said.

"If people are moving from all over the UK to London, because that's where the work is, it means that you don't have to option of living with your family while you're saving.

"If you're paying London rental prices and trying to save for a deposit, that's one hell of an effort [] so any help is absolutely welcome."

It is estimated that 50 companies in the UK run save-to-let schemes, the largest being health insurance provider HSA.

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