LISA0158

Written evidence submitted by Anonymous

I am a longstanding Moneybox customer, and an aspiring first-time buyer who is using a LISA to try and achieve my home-ownership goals.

I've always been good with money, have various savings and investment pots to maximise returns. I've been saving to buy a house for almost 10 years now and I’m proud of the saving habits I’ve built. Despite this, I feel like the goalpost is moving further away with the cost of living, mortgage prices and, primarily, house price increases.

I hugely value my LISA and the savings habits that Moneybox have helped me build. However, there are ways it could work better for me, and others in my position.

Most urgently, I would encourage the Committee to consider an increase in the maximum house price for the Lifetime ISA and to suggest it is reviewed regularly to reflect changes in house prices.

People are renting for longer and so the needs of a first property typically mean the £450,000 maximum isn't enough with the rise in house prices, particularly in the South East. I want to buy to start a family so I need a small house within a commutable distance to London. This is almost impossible at £450,000 but my money is tied up in a Lifetime ISA, and I face the penalty should I withdraw my money. If the Committee could consider raising the cap in line with house price rises, then it would benefit those of us who have committed to this valuable product.

February 2025