Yorkshire Building Society has urged the Government to use the forthcoming Budget to help first-time buyers (FTBs) and maintain support for savers, warning that affordability challenges continue to hold many back from home ownership.
In its formal submission to HM Treasury ahead of the Budget on 26th November, the mutual called for new measures to make buying a home more accessible, including a replacement for Help to Buy and stamp duty incentives for those looking to downsize.
The society also pressed ministers to retain the current £20,000 Cash ISA limit, describing it as vital to both savers and the wider mortgage market.
The submission said: “Cash ISAs have long been a cornerstone of personal savings in the UK, providing a tax-efficient encouragement for individuals to save.
“Simply changing the Cash ISA limit is unlikely to result in more people investing, but it will hurt people who are responsibly saving for short-term goals, when investing is not appropriate. Cash ISA deposits underpin the UK mortgage market and represent a direct investment in the UK economy.”
Susan Allen, chief executive of Yorkshire Building Society, said: “As a mutual, our members come first: whether that’s giving them a better return on their savings, helping them overcome challenges with buying a home or standing up for the things that they care about.
“We want the government to keep the £20,000 Cash ISA allowance, because it offers our members a fair, tax-free return on shorter-term savings. It gives them a safe and stable way to grow savings while supporting mortgage lending and strengthening the UK economy.”
She added: “We also want the government to step up support for aspiring homeowners, especially first-time buyers, and do more to make the housing market work better for buyers, renters and landlords.
“As a building society, making good homes possible for more people is a key part of why we’re here. We’re asking the government to support what we’re doing to overcome affordability challenges, like being as flexible as we can in our lending and cutting the need to save for a large deposit with our £5k Deposit Mortgage.”
