LISA0149

Written evidence submitted by Anonymous

I am a 25-year old PhD student living in Cambridge with my partner, who is also a PhD student. We rent a two-bedroom terraced house (55 sq. m) for £1,750 per month. For the past four years, we have each maximised our LISA allowance to save for a house deposit, as we soon hope to buy our first property. Cambridge has become a true home for us – we’ve built a strong sense of community here. I serve as a school governor; we’ve made lasting friendships and we both deeply value living in such a vibrant city.

However, as we now begin searching for a home, the £450k cap on purchasing a home using the LISA is proving to be completely unrealistic in Cambridge. The small property we currently rent is valued at around £700,000. Finding a property suitable for starting a family (i.e. with more than one bedroom) essentially prices us out of the city. I struggle to understand why there isn’t a higher LISA cap for areas of the country where property prices are significantly above the average, or more fundamentally, why the £450k limit has remained unchanged for years despite soaring house prices.

As an aspiring academic, my career prospects are strongest in the so-called ‘Golden Triangle’ of Oxford, Cambridge and London. Yet buying a home suitable for the next stage of my life in these areas is unaffordable under the current LISA arrangements without sacrificing the aspects I most value – proximity to amenities, quality schools and a car-free lifestyle.

I now face three difficult options: purchase a property in the city that would not be appropriate for a couple wishing to start a family, leave the £25k I have saved thus far as a pension instead (when my priority should be housing), or suffer the withdrawal penalty. None of these options are ideal, but I am hopeful that the committee’s work on this issue will lead to meaningful change.

February 2025