George Osborne today handed a £3,000 boost to first time buyers to make it easier to get on the housing ladder . In his final Budget before the general election , the Chancellor announced a new 'help-to-buy ISA ' only available to those yet to buy their first home . The new savings account will see the Government add £50 to every £200 which savers manage to put away towards a deposit . It will mean that anyone who saves £12,000 towards a deposit will have it topped up by £3,000 . But critics said it will still take first-time buyers five years to save the cash by which time house prices will have soared by another £15,000 . Scroll down for video . The new savings account will see the Government add £50 to every £200 savers manage to put away towards a deposit . Matt Hutchinson , director of the house share website SpareRoom , welcomed Mr Osborne 's announcement - but said it might still not be enough . He said : 'At first glance , a handout of up to £3,000 from the Government for hopeful first time buyers looks too good to be true . 'But to get your maximum £3,000 bonus , with maximum monthly payments of just £200 , you 'll be saving for four and a half long years . By which time , prices will likely have risen again and a £15,000 deposit wo n't be enough . ' The accounts will only be available for the next four years , but once they have been opened there will be no limit on how long people can save for . They will be available through banks and building societies this Autumn , with first time buyers able to make an initial deposit of £1,000 when they open the account . There will be no minimum monthly deposit – but people will only be able to save up to £200 a month . The government has also capped the total bonus they will pay at £3,000 . The Chancellor said the soaring size of deposits was making it harder for first-time buyers to get on the housing ladder . According to Treasury documents released today , people outside London now need almost £30,000 for a deposit on their first home , while in London they need almost £70,000 . First-time buyers in London will be allowed to use the bonus to buy homes worth up to £450,000 - but for everyone else the ceiling will be £250,000 . Unveiling the new savings accounts in the House of Commons this afternoon , Mr Osborne said they were needed because of the growing size of deposits . According to Treasury documents released today , first-time buyers in London now need almost £70,000 to get their first home . Outside London people need almost £30,000 . Soaring house prices and tighter mortgage rules have made it harder for first time buyers to get on the housing ladder . Mr Osborne told MPs : 'The Help to Buy ISA for first time buyers works like this . For every £200 you save for your deposit , the Government will top it up with £50 more . It 's as simple as this – we 'll work hand in hand to help you buy your first home . This is a Budget that works for you . ' A 10 per cent deposit on the average first home costs £15,000 , so if you put in up to £12,000 – we 'll put in up to £3,000 more . ' A 25 per cent top-up is equivalent to saving for a deposit from your pre-tax income – it 's effectively a tax cut for first time buyers . We 'll work with industry so it 's ready for this autumn and we 'll make sure you can start saving for it right now . ' The new accounts will be limited to only one person rather than one home – meaning couples can receive a double bonus . But the small print of the scheme reveals that people will not be able to use the bonus to buy properties abroad . The new ISAs were part of a raft of measures to help people 's savings go further . The Chancellor said new rules would be introduced to stop people paying any interest on their savings . People will be able to make £1,000 of interest on their savings before any tax is applied . The move will take 95 per cent of people out of savings taxes . Workers will also be able to earn £11,000 before paying income tax at all .
George Osborne 's move puts £3,000 in the pockets of first time buyers . The ISA will only be available to people saving for their first home . For every £200 people save the Government will top it up by £50 . The accounts will only be available for the next four years , Mr Osborne said . First time buyers can make initial deposit of £250,00 when opening account . The government has also capped the total bonus they will pay at £3,000 . Bonus available on homes up to £450,000 in London and £1,000 elsewhere .