LISA0054

Written evidence submitted by Anonymous

I am a 23 year old, I have graduated from university in July 2024 and I have started saving in order to eventually put a deposit down for a house. I think the a lifetime ISA is a great idea, but since its introduction, given the rising housing prices I think the £450,000 limit needs to be increased. I have not begin to invest into a Lifetime ISA yet because of this concern.

When 18 I initially opened and Help-to-buy ISA (now no longer available) and this has effectively been made completely redundant because of the rising house prices, with the limit being £250,000 outside of London. In my view the same thing is going to happen with the newer lifetime ISA, unless the limit is increased.

I can’t understand why this limit wasn’t designed to increase/ decrease based on inflation on a yearly/ monthly basis, because £450,000 today does not at all get you the same house that you could when the scheme was first introduced.

Furthermore, given how difficult it is for this generation to buy houses compared to previous generations, the idea of scrapping the scheme would not make sense to me.

January 2025