Individual Savings Accounts
The question
To ask the Chancellor of the Exchequer, whether she plans to implement a property price cap on the First-Time Buyer ISA based on whether the property is (a) in London and (b) outside London.
Answered by Rachel Blake
On 23 June the Government published a consultation on the implementation of the First-Time Buyer ISA (FTB ISA), further details of which can be found at www.gov.uk/government/consultations/first-time-buyer-isa-consultation. The consultation confirmed that until the new product is offered it will be possible to open a Lifetime ISA (LISA). After the new product is introduced it will not be possible to open a LISA but existing LISA holders will continue to be able to use their accounts in line with the existing rules.
There are currently no plans to increase the property price cap for the LISA, Help to Buy ISA or FTB ISA. The FTB ISA consultation does not propose the level at which any property price cap, government bonus or subscription limit should be set or whether a separate property price cap should apply in different parts of the UK.
Data from the latest UK House Price Index shows that the average price paid by first-time buyers remains below the Lifetime ISA property price cap in all regions of the UK except London, where the average price paid is affected by some boroughs with very high property values. The Help to Buy ISA also continues to support first-time buyers within its existing property price caps.
The Government will consider views received as part of the consultation process including comments on the interaction between the new product and the Lifetime ISA. All feedback will be considered in coming to a decision on the detail of the design and implementation of the FTB ISA.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →