LISA0118

Written evidence submitted by Anonymous

My daughter is currently saving up for her own first home which she will purchase with her boyfriend. She currently rents and lives in London. Rental costs are enormous, and her potential monthly mortgage fee would be less.

She is saving in a life-time ISA but she has recently started putting her savings elsewhere due to the fixed top purchase price that is allowed to be used with the ISA. If this continues to be fixed at £450k whilst house prices are rising then there is a strong risk that she will not be able to benefit from the savings in the ISA as her home purchase price could be over £450.

Her current choice it to either:-

1. Keep the money in the ISA for her pension, and lose out on much needed money for her house deposit

or

2. Take the money out of the ISA for her house deposit and lose 25% which takes away both the government support (20%) and some of her original deposits.

Please reconsider the Lifetime ISA rules to either

1. Increase the maximum house price that can be purchased in line with inflation.

or

2. Do not claw back 25% of her savings.

January 2025