First-time buyers are increasingly taking advantage of the Help to Buy Isa, with property sales using the scheme reaching record levels in June.
Data published by HMRC shows there were 8,330 properties purchased with a Help to Buy Isa during June, more than any month since its launch.
This brings the total number of properties purchased with the help of the Isa up to 83,686 since its launch in December 2015.
Around 90% of those who have bought a property using a Help to Buy Isa are under the age of 35. The median age of people using the scheme is 27, compared to an average age of 30 for all first-time buyers.
A total of 113,868 bonuses have been paid by the government, worth a total of £77 million. The average bonus paid to buyers is £678.
These figures do not include Help to Buy Isa holders who have yet to purchase a house.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, says: “Anyone saving into a Help to Buy Isa at the moment has to be cheered by the fact that since December 2015, nearly 84,000 people who were in their shoes have since clambered onto the housing ladder.
“As time goes on, and funds build up in these Isas, we are seeing more and more people able to buy a home with the help of the scheme. June saw a record number of completions using funds from Help to Buy Isas.”
How do Help to Buy Isas work?
Help to Buy Isas offer a boost to first-time buyers struggling to save for a deposit.
The main attraction of a Help to Buy Isa is that the government will give you a bonus worth up to £3,000 when you buy your first home (£50 for every £200 you save). You can save up to £200 each month, plus an additional £1,000 when you first open an account. Save £12,000 and you will earn the maximum £3,000 bonus.
Where can I get the best Help to Buy Isa?
The best deal available across the UK is the Barclays Help to Buy Isa at 2.27%. It pays monthly interest payments, which can be useful if you want to switch or close the account early. It can be opened in branch and over the phone.
Many local building societies have special offers for those living in their catchment area. Read the Moneywise guide to Help to Buy Isas for more information.