With recent HMRC data showing over 1.5 million people across the UK are currently saving with a LISA across the country, now feels like a prime opportunity to consider how we enhance what has already proven to be a transformational product that has helped nearly quarter of a million people across the UK buy their first home.
Despite a LISA property purchase price cap of £450,000, Moneybox LISA-enabled FTBs who bought their first home in London last year, paid £367,000 on average, having saved £17,637 in their Lifetime ISA towards their deposit, which included a government bonus of £3,211.
Against a backdrop of spiraling property prices over the last decade, and the fact that the average cost of a house in London outstrips the national average at £511,000, it is clear why young people across the capital are turning to the LISA for help.
The LISA has transformed how young people save, with nearly 8 in 10 current LISA savers reporting that they are saving more frequently and more consistently since they opened the product.
Given the significant rise in property prices over the last decade, the static property price cap needs revisiting annually to ensure the LISA remains fit for purpose into the future.
