Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing the £450,000 maximum home purchase price allowed via a Lifetime ISA in line with the UK average year-on-year increase in house prices.

The Lifetime ISA is intended to support younger people saving for their first home or for later life by offering a generous government bonus of 25% on up to £4,000 of savings each year.

The Government maintains that the 25% bonus should be focused on those that need it most and who may find it more difficult to get onto the property ladder, while ensuring sustainable public finances. First-time buyers who can purchase a home valued over £450,000 are likely to have an income significantly above that of the average household in the UK and are therefore more likely to be able to purchase a first home without the support of this scheme.

The Government considers a property price cap of £450,000 appropriate to support the majority of first-time buyers across the UK. However, the Government keeps all aspects of savings policy under review.