Lifetime ISA
Save up to £4,000/year and the government adds a 25% bonus — free deposit top-up (£1,000/year max).
- Who it's for
- First-time buyers aged 18–39 (open), –50 (contribute)
- Price cap
- £450,000 property price (nationwide)
- Status (April 2026)
- Live, accepting new applicants.
How it works
Open between ages 18 and 39. Contribute up to £4,000 per tax year, receive a 25% government bonus (up to £1,000/year) paid in monthly. Use the money penalty-free for your first home (price ≤ £450,000) after holding the account for at least 12 months, or from age 60, or if terminally ill. The £4,000 counts inside your £20,000 overall annual ISA allowance. Cash and Stocks-and-Shares versions available — cash LISAs suit a shorter deposit timeline.
Official source: https://www.gov.uk/lifetime-isa
Frequently asked
What if house prices in my area are above £450,000?
You can still save into the LISA, but you can't use it penalty-free for a home above the cap. The £450k cap hasn't moved since 2017, which now excludes most of central London and parts of the South East. The planned April 2028 replacement is expected to raise or remove this cap — watch for Budget announcements.
Cash LISA or Stocks & Shares LISA?
If you're buying within 5 years, cash LISA. If buying in 5-10 years, stocks-and-shares LISA can outperform but has no capital guarantee. Neither is advice specific to your situation — this is a general pointer, not a recommendation.
Where this sits in your planning
Schemes are one input to a buying decision, not the decision itself. Model the same purchase with and without the scheme on the affordability calculator — the total cash required and the monthly payment are usually the deciders, not the headline scheme benefit.