LISA (Lifetime ISA) £450,000 limit

majora

To use a LISA, the rules state -

"You must be buying a residential UK property to live in that costs £450,000 or less".

In London, this will seriously reduce the number of properties that one could buy.

As per House Price Index for Dec-20, average house price in London is £496,066.

Are there are any plans for the government to increase the limit so that it keeps pace with house price inflation and also to introduce a higher cap for London?

eskbanker

No plans that I'm aware of - bear in mind that this is a scheme intended to benefit first time buyers, who'd be expected to buy well below the average value of all properties....

Amoux

To add on to that point, the average price paid by first-time buyers in London was £431,160 in December 2020 (according to which) so not impossible under the current restraints. 

majora

Thanks to all.

Rich2808

Amoux said:

To add on to that point, the average price paid by first-time buyers in London was £431,160 in December 2020 (according to which) so not impossible under the current restraints. 

Noted - but is that a first time owner (eligible for the HTB and lifetime ISA) or a first property bought in the UK (but may own many abroad)?
I think it may be the latter - so not quite the same.
You probably won't find many houses for £450k or less - possibly in Dagenham or Bexley - but plenty of flats. On rightmove there are 22,000 properties for sale in the London area between £100k and £450k so perfectly possible.

Jon66

Hi, Are there any further updates on the Lifetime ISA property price limit being increased?

Alexland

Jon66 said:

Hi, Are there any further updates on the Lifetime ISA property price limit being increased?

No, they never uplifted the old HTB ISA price limits so don't get your hopes up.