LISA0097
Written evidence submitted by Anonymous
My name is xxxxxxxx and the reason I would like to submit evidence is because my partner of 3 years and I rent in London together in a one-bedroom flat and are now in a secure financial position to look to move to a two-bedroom home, which will suit our needs for the next stage in our lives. We both work in a hybrid manner so can be working from home 3-4 days per week, which can be a strain in the current situation, so we need space to set up desks and workstations. We are both in our 30s and are also thinking about starting a family, which means a second bedroom isn’t a luxury; it would be a necessity. We have put together a good deposit from years of saving and have a combined value of nearly £80k in our LISAs. However, since we have started the search in London, we have found that finding somewhere that fits all those needs as well as staying within £450k has been impossible.
The average property price in London is well above £500,000. Even in so-called “affordable” areas, two-bedroom flats or small homes in decent condition often exceed the LISA cap. What’s left are properties that need extensive renovation, are far from transport links, or are simply too small for us to live and work in comfortably, let alone if our family expanded.
The emotional toll of this situation is heavy. We’ve spent countless evenings across months and months scrolling through property listings, feeling the same crushing disappointment over and over. Every compromise we consider—smaller space, further out, poorer condition—feels like a step away from the life we’ve worked so hard for. Moving more rual is not what we want and we also don’t have a car so being near good and reliable transport links is essential for us, which you lack when moving further afield. However, more importantly, we want to stay within London as it is our home and we can afford to live here. But what we are increasingly seeing is that it’s not just about what we can afford; it’s about what we’re giving up. A smaller, one-bedroom flat might technically fall under the LISA cap, but where would we fit a nursery when the time comes? If we took the money out of the LISA we would not only lose the bonus, which is technically our money, but also you would come out with less than you put in over the course of the time we have had it. This is baffling as it covers off every way we can try and get around the cap being limiting. Having any charge at all for taking out your own money just feels like theft. We wouldn’t be looking at the option of taking it out if the scheme was more fit for purpose anyway! Instead of putting in charges, the government should adapt the scheme to work better for Londoners in particular who have always faced a different housing situation to the vast majority of the rest of the country.
We want to own a home—not just for the sake of it, but because it represents stability, freedom, and the ability to plan for the future. We want a space where we can work, grow, and welcome children without feeling like we’re constantly compromising.
The LISA has the potential to be a powerful tool for helping people achieve these dreams. But right now, it feels like it’s working against us. By updating the cap, removing the punitive penalties, and making the scheme more flexible, the government could transform it into something truly meaningful for us and people just like us.
We’re not asking for a handout. We’re asking for fairness. For a scheme that reflects the realities of living and working in London. For a chance to break out of the renting cycle and finally put down roots. Please make a change that actually helps first time buyers.
I am staying hopeful that this Government can do something about this, and it is encouraging that you are looking into it. I look forward to hearing what happens as a result of this.
January 2025