Ahead of the government’s Autumn Budget, OneFamily is continuing its campaign for changes to the Lifetime ISA (LISA) to better support first-time buyers struggling to get onto the property ladder.
The LISA provider is urging the government to increase the £450,000 property price cap – which has remained unchanged since 2017 – in line with the rise in property prices. It is also calling for the withdrawal penalty to be adjusted to make the scheme fairer for savers.
Stats – what people think about proposed LISA changes
In a recent survey of 2,000 UK adults aged 18–40, OneFamily found that people would be significantly more likely to take out a Lifetime ISA if the property price cap were increased. The research also revealed that the existing withdrawal penalty is deterring an estimated one million potential savers.
Key findings:
- If the price cap was increased in line with the growth of property prices, 41% of 18–40-year-olds without a Lifetime ISA say they would be more likely to take one out – equivalent to 7.1 million people.
- Of the adults aged 18–40 who wouldn’t consider taking out a Lifetime ISA, 21% said the thought of paying the withdrawal penalty puts them off – equivalent to more than one million people.
Jim Islam, CEO of Lifetime ISA provider OneFamily, said:
“Hopeful first-time buyers are facing enormous challenges. High property prices, rising rents, and the increased cost of living are making it harder than ever to save for a deposit. The Lifetime ISA offers a vital lifeline, giving savers a 25% government bonus that can make a real difference.
We’ve seen the positive impact LISAs can have on young people’s lives first-hand – in the 2024/25 financial year alone, it helped nearly 90,000 people buy their first home.
But given the scale of the difficulties they face, it’s clear that more needs to be done. We’re calling for the withdrawal penalty to be adjusted and for the £450,000 property price cap – unchanged since 2017 – to be increased. These changes are the right thing to do and would support people in taking that crucial first step onto the housing ladder.”
