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 won'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 £1,000 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 £250,00 elsewhere .