Government urged to set up national savings scheme

The government has again been urged to set up a national deposit savings scheme offering tax-free bonuses to help struggling first-time buyers get on the housing ladder. Chairman of the New Homes Marketing Board said the scheme would not only re-establish a savings habit, but could improve liquidity in the mortgage market. Savers would be encouraged to take five years to accumulate £30,000, at which point they would receive a 25 per cent tax-free bonus. The final figure would provide a 20 per cent deposit on a typical new home.