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Written question asked by Wendy Morton (Conservative) on Monday, 6 July 2026, in the House of Commons. It was due for an answer on Wednesday, 8 July 2026. It was answered by Rachel Blake (Labour) on Monday, 13 July 2026 on behalf of the Treasury.

Individual Savings Accounts

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of (a) the economic impact of the £450,000 property price cap for first-time buyers' Lifetime ISA and (b) the impact of regional affordability, particularly in London and the South East, on the effectiveness of the cap; and what estimate her Department has made of the number of prospective purchasers excluded by the current threshold.

Answer

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 sets out why we are looking to replace the Lifetime ISA (LISA), citing evidence from HMRC’s own publicly available figures and research as well as from the Treasury Select Committee’s report on the LISA.

The consultation also confirmed that until the new product is offered it will be possible to open a LISA, and that existing LISA holders will continue to be able to use their accounts in line with the existing rules.

Individuals will be able to hold both the new FTB ISA and an existing LISA, but will only be able to save into one in the same tax year. To ensure that current holders of the LISA do not lose out, LISA holders will be able to use any funds in their existing LISA and those in the new FTB ISA for the same purchase.

The property price cap, bonus level and subscription limit of the new First Time Buyer ISA will be set at a future fiscal event. Regardless of where the property price cap is set, the FTB ISA, LISA and Help to Buy ISA cap will be aligned so that no account holders will lose out.

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. This does not exclude prospective purchasers, who are still able to use the LISA on homes within the price cap. The Treasury Select Committee has said that the property price cap of £450,000 on the LISA ensures that the support goes to people who need it most.

Secondary information

Type
Written question
Reference
15992
Session
2026-27
Grouped for answer
Yes
Subjects
Economic situation Individual savings accounts Property Price caps First time buyers South East
Contains statistics
Yes
Link
View this Written question on www.parliament.uk