The Conservative Party has pledged to hand over the young people to their first home £5,000.
The oath comes from Sir Mel Stride, the Secretary of the Movie, who said his party’s “first mission bonus” would be handed over to people at full-time jobs, with his NIC payments transferred to a long-term savings account.
Tories said the action couple could be worth £10,000, with 600,000 people likely to benefit each year, and the cost is £2.8 billion.
“I want to send a clear message to the young people who are staring in their lives,” Stride (pictured) said in a speech at the Conservative Party meeting in Manchester this morning.
“If you work hard and do the right thing – the Conservatives are there for you.”
He said the cash to fund the scheme would come from £47 billion in savings and would save in five years if it becomes the next government.
This will come from a range of areas, including cuts to the welfare bill, civil servants, overseas aid budgets and the end of the use of hotels to place asylum seekers.
John Charcol’s mortgage technology manager Nicholas Mendes said the £5,000 rebate for first-time buyers would be “welcome” but “not transformative”.
Mendes believes: “In most areas, it will comfortably cover ownership, valuation and relocation costs, leaving a little deposit left.
“In most parts of London and southeast, that’s many multiples of that number, it’s unlikely to change behavior in a meaningful way.”
He added: “Lenders also need to have a clear understanding of whether the rebate is a count of cash deposits, whether it can be combined with a lifetime ISA, and how to treat it if someone changes jobs or has a hiring interruption.”
If the move is intended to replace Lisas, “this will cause real problems.” Sarah Coles, head of personal finance at Hargreaves Lansdown, said.
Coles asked: “People were able to continue paying and get extra bonuses from the government.
“Lisa has the potential to pay tens of thousands of pounds in bonuses and losing it would be a real blow.
“Will people continue to be able to save and invest? If the ISA fails throughout its life with the launch of the program, this could mean reducing options available to produce deposits.
“It could punish those who expect to put down smaller payments over longer periods, including those with lower incomes.”
These include better upfront property information, earlier binding contracts and more use of digital information.
