In the face of soaring house prices the effectiveness of the LISA is rapidly diminishing, writes Laura Suter
The Lifetime ISA (LISA) was introduced as a beacon of hope for first-time buyers – a government-backed savings vehicle designed to help individuals save for a home deposit while receiving a 25% bonus. However, in the face of soaring house prices, its effectiveness is rapidly diminishing. The £450,000 property price cap, unchanged since 2017, has become a straitjacket, leaving thousands of savers locked out of the very housing market it was designed to support. AJ Bell's recent analysis paints a stark picture: by the end of this parliament, the LISA will fail to cover the cost of a typ...
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