Speaking in the House of Commons for the 2015 Budget, Chancellor George Osborne said this is “effectively a tax cut for first-time buyers”.
He added: “We will work hand in hand to help you buy your first home.
“This is a budget that works for you. A 10% deposit on the average first home costs £15,000 so if you put in up to £12,000 we will put in £3,000 more.
“A 25% top up is equivalent to saving for a deposit with your pre-tax income.
"We will work with industry so it’s ready for this autumn and we will make sure you can start saving for it right now.”
