The Government appears to have ruled out raising the property price cap for Lifetime ISA savers to make a home purchase.
Currently, first-time buyers putting money into a Lifetime ISA can use the funds towards a property purchase up to a maximum of £450,000.
This has drawn criticism though as the cap has remained the same since 2017 while rising house prices mean many struggle to find a property below this threshold.
Labour backbench MP Danny Beales asked in Parliament this week what assessment the Government has made of the effectiveness of the upper limit of house prices for the Lifetime ISA.
Economic Secretary to the Treasury Emma Reynolds cited data from the latest UK House Price Index showing that while the average price paid by first-time buyers has increased, it is still below the 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.”
She said: “The Government keeps all aspects of savings tax policy under review.”
Source: Estate Agent Today