To ask the Chancellor of the Exchequer, if he will make it his policy to (a) align the house price ceiling for the Government bonus for the discontinued Help to Buy ISAs with the new £450,000 level that applies to new Lifetime ISAs; or (b) disregard the £4,000 annual limit when whole balance transfers are made from discontinued Help to Buy ISAs into Lifetime ISAs.
The Help to Buy: ISA scheme aims to help those that are struggling to save enough to get onto the housing ladder. The property price cap allows the Government to target support at the first-time buyers who need it the most. The scheme includes a higher property value cap of £450,000 for properties in London compared to £250,000 anywhere else in the UK.
Since the scheme launched in 2015, 386,728 property completions have been supported through the scheme with a mean property value of £174,531 compared to an average first-time buyer house price of £210,727 and a national average house price of £251,500.
The Lifetime ISA was launched in April 2017 and for the duration of the 2017-18 tax year, savers with a Help to Buy: ISA could transfer their full balance to a Lifetime ISA as a transitional measure. Any transfers from a Help to Buy: ISA to a Lifetime ISA made from 2018-19 onwards are subject to the Lifetime ISA’s annual subscription limit of £4,000.