CHANCELLOR George Osborne unveiled a surprise move to help young house buyers by up to £3,000 in his last Budget before May’s General Election.

First-time buyers who save towards a deposit in a new help-to-buy Isa will have their prudence rewarded with a payment from the government when they splash out.

The bonus will be equal to a quarter of their savings, so for every £200 they save, the government will give them £50 – up to a maximum of £3,000.

The support was given a cautious welcome by housing campaigners, though many were disappointed the Chancellor did not go further in tackling what many see as a national crisis.

Paul Tanney, chief executive of Durham-based Four Housing Group, said the Budget contained “very little” on housing and he was very disappointed.

“The Chancellor seems to have completely ignored yesterday’s rally in London and the calls to end the housing crisis in general,” he said.

“There’s a national housing crisis and on having enough properties and the right kinds in the right areas, there’s nothing.”

Mark Henderson, chief executive of housing provider Home Group, echoed the point, while welcoming the introduction of 20 “housing zones” to encourage the construction of new houses on public land, one of which will be in Gateshead.

Think tank IPPR North said the move was welcome but without more new homes, the extra cash would only push house prices further out of many people’s reach.

However, Lloyds Banking Group was more positive, saying it could reduce saving time for a deposit by almost a year.

The most that can be put into the new Isa and boosted is £12,000, rising to £15,000 with the government support.

However, the bonus is being offered for each person, not each house, so couples could get up to £6,000, plus interest.

The offer will be open to anyone aged 16 and over who has never owned a home.

It cannot be used for buy-to-let properties or homes costing more than £250,000 (£400,000 in London) and is not open to anyone paying into a cash Isa in the same tax year.

Savers must build up at least £1,600, as the minimum government contribution is £400, and the savings accounts, run by participating banks and building societies, will be open for four years from this autumn, should the Conservatives still be in power.

There will be no limit on how long someone can save for.

The Treasury expects the move to cost £45m this year, rising to £835m in 2019-20 as 285,000 first-time buyers use the scheme each year.

Paula Higgins, chief executive of the campaign group HomeOwners Alliance, said it was great news; but Jonathan Harris, director of mortgage broker Anderson Harris, warned of a danger of pushing up house prices even further.