Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Lifetime ISA withdrawal limit for home purchases in London in the context of average house prices in London in 2024.
Answered by Tulip Siddiq
The Lifetime ISA (LISA) property price cap supports most first-time buyers across the UK while targeting households that might find it most difficult to get on the property ladder. Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings.
The Government keeps all aspects of savings tax policy under review.
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