The new Isa for first-time buyers is unlikely to solve the housing crisis – and could even worsen the property price 'bubble ' , economic experts warned yesterday . The Help to Buy Isa was announced by the Chancellor in Wednesday 's budget , delighting thousands of young buyers struggling to save for a deposit . Under the plans , the Government will boost people 's savings by £50 for every £200 they put away , with a maximum bonus of £3,000 . And couples can have separate Isas , meaning they can receive a £6,000 bonus towards their first home . The Help to Buy Isa was announced by the Chancellor in Wednesday 's budget , delighting thousands of young buyers struggling to save for a deposit . The policy has been welcomed by mortgage brokers , who believe it could inject some life into a slowing property market . But the Institute for Fiscal Studies and two leading free market think-tanks yesterday warned that the scheme could backfire . They said it would only fuel demand without addressing the severe lack of new homes across the UK . IFS economist Stuart Adam said those who would find it easiest to take up the offer were people already able to afford a deposit . 'This is a rather dubious policy , intended to help first-time buyers which is more than likely to have the effect of inflating housing prices , ' he said . ' A lot of the benefit of the policy will go to people who would have done that saving anyway . ' The policy has been welcomed by mortgage brokers , who believe it could inject some life into a slowing property market . The Institute of Economic Affairs described the new Isa as 'hopeless ' and said it offered short-term help while failing to tackle the affordability crisis . It also warned it could worsen the 'housing bubble ' by driving up demand . The TaxPayers ' Alliance said the real problem was Britain 's 'restrictive planning regulations ' – an issue the Isa failed to tackle . 'This expensive policy will do nothing to address the housing shortage , ' a spokesman said . Jonathan Harris , of mortgage broker Anderson Harris , added : 'Yesterday 's Budget announcement about the Help to Buy Isa is a welcome boost for first-time buyers . 'However , we would like to see a greater emphasis on building more homes . There is a danger that giving first-time buyers assistance with a deposit will only push up property prices further . ' But Peter Rollings , of estate agents Marsh & Parsons , said the Isas , coupled with cheap mortgage rates , would 'up the ante in the housing market in the coming months ' . David Hollingworth , of brokers London & Country , added that the scheme would particularly help in areas where house prices had been 'outpacing the rate at which first-time buyers can save ' . The Help to Buy Isas will be offered by banks and building societies in the autumn . They can be opened only by first-time buyers , and while money can not be transferred straight from a relative 's account , there is nothing to stop a relative transferring money into an account belonging to the buyer , who can then transfer it into their Isa . The Treasury says it will not decide exactly how and when to pay the money until it has consulted with the industry . The bonus will be available on home purchases of up to £450,000 in London and up to £250,000 outside London .
Help to Buy Isa was announced by the Chancellor in Wednesday 's budget . The scheme will help people who are struggling with their mortgage payments, but don't have enough money left over for a deposit on a home or other essentials such as food and clothing.