Over a third of London first-time buyer purchases exceed Lifetime ISA cap
Reallymoving says 34% of London first-time buyer purchases are above the £450,000 cap, up from 25.7% when the Lifetime ISA launched in 2017.
More than a third of first-time buyer purchases in London now exceed the Lifetime ISA's £450,000 property price cap, according to analysis by reallymoving. The firm put the figure at 34%, up from 25.7% when the Lifetime ISA launched in 2017. The cap has not changed since then.
Across the UK, 8.1% of first-time buyer purchases were above the limit, compared with 4.7% in 2017, reallymoving said. The South East had the second highest proportion after London at 10.8%, followed by the East of England at 7.3%.
Reallymoving's analysis of the Government's UK House Price Index found that raising the cap in line with UK house price inflation since 2017 would take it to around £597,000.
The firm has called on the Government to use the Autumn Budget to confirm details and a launch timetable for the proposed First Time Buyer ISA, including a revised property price cap.
Rob Houghton, founder and chief executive at reallymoving, said a single national cap puts buyers in more expensive regions at a disadvantage. "The government must ensure the new First Time Buyer ISA reflects the housing market buyers are navigating today," he said.
Houghton said the Chancellor should commit to a higher cap with regular reviews. He also said the Government should consider a separate, higher cap for London, following the approach taken with the Help to Buy ISA.
