Salford residents who do not yet own a property, and are over the age of 16, have until midnight on the 30th November 2019 to apply for the government Help to Buy ISA.
The scheme is available everywhere in the UK but Salford has a lower rate of home ownership than the rest of the country.
Only 21.8% of people own their own homes, compared to the national average of 30.6%, which is why any scheme like this one can be used to help local people get onto the housing ladder. (Office for National Statistics & Department for Work & Pensions).
Drastic house price surges in the last 25 years have worried potential buyers.
In Salford in 1995 a terraced house could be brought for an average of £26,791, whilst today the same property would cost you £158,528, which amounts to a 492% increase, according to home.
The ISA can be opened with a range of banks offering different rates, but all require only £1 to set up.
Applicants must live in the UK and have a national insurance number, and must not have set up another cash ISA in this tax year.
The ISA can be used to save up to £1,200 in the first month of opening it, then £200 a month after that.
Once £1,600 is saved in the account, the government will add 25% tax free to the account. The maximum bonus you can receive is £3000, which is gained by saving a total of £12,000 in the ISA.
The bonus can only be used on properties worth £125,000 or less, but up to £450,000 for houses in London.
You can take out the money at any time, for example if you are buying a property over the price limit, but you will not receive the bonus cash- only the interest gained on your savings. The Website Money Saving Expert recommends ringing your bank to talk through your opinions if you have already paid into a cash ISA.
Anyone interested in opening an account can have a look the details about each bank posted here.
More information about the ISA, including a ‘bonus calculator’ can be found on the HM Government website