Asked by: Jonathan Davies (Labour - Mid Derbyshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the ongoing First Time Buyer ISA consultation, whether she has made an assessment of the potential merits of improving the Lifetime ISA product rather than creating a new product.
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 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 ÂŁ450,000 on the LISA ensures that the support goes to people who need it most.
Asked by: Jonathan Davies (Labour - Mid Derbyshire)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the National Audit Office report into shared ownership (25 March 2026), what steps the Government is taking to improve affordability of shared ownership properties.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
The government recognises that some shared ownership leaseholders face difficulties selling their homes, especially where building safety issues are present.
We have taken steps to support shared owners who find themselves in such a position, including making clear that where building safety issues exist, subletting should always be permitted by the landlord.
Landlords have the option to buy back homes where shared owners are unable to sell due to building safety issues, and they can use their own resource or Recycled Capital Grant Funding to do so.
Shared ownership providers are independent bodies, and decisions about the management, sale or repurchase of individual homes sit with them.
While buyback provisions already apply in some limited circumstances, such as in Designated Protected Areas or where providers offer discretionary support in exceptional cases, the government has no current plans to introduce a mandatory buyback scheme for all shared ownership homes.
The new Social and Affordable Homes Programme places new expectations on shared ownership providers to improve customer experience. These include giving greater consideration to long-term customer affordability and increasing transparency and fairness on costs.
Asked by: Jonathan Davies (Labour - Mid Derbyshire)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what steps the Government is taking to support those in shared ownership properties who are unable to sell their property.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
The government recognises that some shared ownership leaseholders face difficulties selling their homes, especially where building safety issues are present.
We have taken steps to support shared owners who find themselves in such a position, including making clear that where building safety issues exist, subletting should always be permitted by the landlord.
Landlords have the option to buy back homes where shared owners are unable to sell due to building safety issues, and they can use their own resource or Recycled Capital Grant Funding to do so.
Shared ownership providers are independent bodies, and decisions about the management, sale or repurchase of individual homes sit with them.
While buyback provisions already apply in some limited circumstances, such as in Designated Protected Areas or where providers offer discretionary support in exceptional cases, the government has no current plans to introduce a mandatory buyback scheme for all shared ownership homes.
The new Social and Affordable Homes Programme places new expectations on shared ownership providers to improve customer experience. These include giving greater consideration to long-term customer affordability and increasing transparency and fairness on costs.
Asked by: Jonathan Davies (Labour - Mid Derbyshire)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment the Government has made of introducing a statutory right to a buyback for all existing shared owners.
Answered by Matthew Pennycook - Minister of State (Housing, Communities and Local Government)
The government recognises that some shared ownership leaseholders face difficulties selling their homes, especially where building safety issues are present.
We have taken steps to support shared owners who find themselves in such a position, including making clear that where building safety issues exist, subletting should always be permitted by the landlord.
Landlords have the option to buy back homes where shared owners are unable to sell due to building safety issues, and they can use their own resource or Recycled Capital Grant Funding to do so.
Shared ownership providers are independent bodies, and decisions about the management, sale or repurchase of individual homes sit with them.
While buyback provisions already apply in some limited circumstances, such as in Designated Protected Areas or where providers offer discretionary support in exceptional cases, the government has no current plans to introduce a mandatory buyback scheme for all shared ownership homes.
The new Social and Affordable Homes Programme places new expectations on shared ownership providers to improve customer experience. These include giving greater consideration to long-term customer affordability and increasing transparency and fairness on costs.