Moneyfacts made the call after two sets of research from Aldermore and Halifax found first-time buyers still felt there were barriers which stopped them from believing they could own a home.
Halifax found that mortgage affordability and saving for a deposit were the main obstacles, while Aldermore’s research showed a disparity between sexes with 68 per cent of women seeing home ownership as home unachievable, compared to 57 per cent of men.
The Help to Buy ISA scheme closes to new investors on 30 November and could see savers have their deposit boosted by a £3,000 bonus from the government.
Higher interest rates
Moneyfacts analysed the top 10 best rates of Help to Buy ISAs and Lifetime ISAs – another scheme which offers a bonus on house deposits – and found that on average, the interest was higher on the former at 2.41 per cent compared to the Lifetime ISA’s average interest rate of just 1.20 per cent.
Rachel Springall, spokeswoman for Moneyfacts, said: “Home ownership may still feel out of reach for many consumers, despite a healthy savings habit, which is why any boost to their deposit would be a welcome addition.
“Someone without any financial support from their family or a partner to buy a home with may feel like home ownership is unlikely to ever happen and could feel as though they will be renting for life.”
She added: “Hopefully, this will not be the future for everyone who does desire their own home, but to combat this outlook, taking advantage of any government schemes to help them onto the property ladder is wise.”