Housing: Prices

Treasury written question – answered on 29th October 2021.

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Photo of Anthony Browne Anthony Browne Conservative, South Cambridgeshire

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.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

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.

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