Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the answer of 17 November to Question 87901 on Individual Savings Accounts, what assessment she has made of (a) the impact of the property price cap on the number of first-time buyers purchasing homes, (b) the number of first-time buyers by London borough, and (c) if she will make it her policy to provide a separate cap for properties in (i) inner London boroughs and (ii) outer London boroughs.

Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers is below the LISA property price cap in all regions of the UK. This includes London, where the average price paid by first-time buyers in November 2023 was under £437,000. A single UK-wide cap keeps the Lifetime ISA simple for savers and providers. In 2024/25, 87,250 individuals withdrew Lifetime ISA funds for a house purchase, an increase of around 30,500 on the previous tax year.

While HMRC does collect data on regional breakdown of Lifetime ISA account holders, the data quality is not sufficient to provide accurate regional breakdowns or produce statistics on individual London boroughs.

In HMRC’s response to the recent Treasury Select Committee’s LISA enquiry (link), a regional breakdown was provided where homes were bought using LISAs: HMRC LISA enquiry response - Tables 1, 2 and 3.

The Government keeps all aspects of tax and savings policy under review.