LISA without indexing on cap

dalts99

Is it sensible to advise young people to commit to a lisa where there is no indexation on the £450K house limit? Imagine saving in there for 15 years without the limit lifting. I think it's irresponsible to be tied into something that has no guarantees around it. Yes the 25% bonus is good, but limited to £1000 and when it goes out of favour (as most of these Government schemes do) you'll be stuck with uncompetitive rates. 
 

masonic

Very little in this world is guaranteed.

If will takes you 15 years to save a deposit, then perhaps committing to a LISA early on is unwise. However, over that period of time a S&S LISA could be considered, as it could for use in retirement.

The bonus is not limited to £1000, it's limited to £1000 per year, and if the scheme was wound down it is likely LISAs would be converted to ISAs.

Average prices in my area are about half the £450k limit and small homes suitable for FTB less again. So the decision will also be regional.

This was always a scheme to support house price inflation (ultimately the government bonus ends up in the pockets of property developers and those already on the property ladder). FTB would benefit most from prices coming down. But while inflationary schemes like this are available those who don't participate will be at a disadvantage to those who do.