LISA0085

Written evidence submitted by Anonymous

As a user of a lifetime ISA, my responses to the inquiry are regarding questions 6 and 8. I believe that the withdrawal penalty should be reformed such that the individual withdrawing money early doesn’t lose any money, i.e. the penalty should be 20% rather than 25%. This is because individual circumstances can change, necessitating early withdrawal, and a 6.25% extra surcharge seems quite excessive. I also strongly believe the house price cap should be raised. I live in London, and will do in the future, and with the average house price in London exceeding £500,000, the Lifetime ISA with the current cap is basically useless for people in my position. I believe there should be a large rise now, to make up for the 9 years of a frozen threshold in which house prices have risen significantly, after which it should be indexed to house price growth.

January 2025