Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, what recent analysis she has made of the potential impact on the economy of Lifetime ISA savers defering utilising the scheme for purchasing houses due to the house price restriction and withdrawal penalty.
Answered by Lucy Rigby
The LISA encourages younger people to save towards later life at the same time as being able to save for their first home.
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 Lifetime ISA 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.
As of 2023/24, there were over 1.3 million LISA accounts open and, since its introduction in 2017, the LISA has helped 227,600 people purchase their first property.
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