First-Time Buyer ISA Replaces Lifetime ISA Amid Housing Scheme Launch
Chancellor John Healey introduces new savings product and £4.7 billion Your First Home scheme to aid 70,000 households.
Carla Rooney
The government has replaced the Lifetime ISA with a new First-Time Buyer ISA scheme.
The First-Time Buyer ISA launches April 2029. It offers a critical bonus on account balances when buyers withdraw funds for a qualifying first home. This bonus applies to properties valued up to £450,000.
The new product eliminates the upper age restriction. Buyers purchasing a house above the £450,000 LISA limit will now pay a reduced 20 percent withdrawal charge.
Alongside the ISA overhaul, the new £4.7 billion Your First Home scheme targets approximately 70,000 households in England. This scheme provides 20% equity loans to first-time buyers, with a five-year interest-free period.
Government indicated that The new £4.7 billion Your First Home scheme targets approximately 70,000 households in England. This scheme provides 20% equity loans to first-time buyers, with a five-year interest-free period.
Income caps for the Your First Home scheme stand at £110,000 per household outside London and £140,000 inside London. Price caps will align with local authority median prices, with inner London capped at £650,000 and outer London at £500,000.
The scheme requires a 2.5% deposit. A maximum deposit is set at 15%.
Separately, the government extends cheaper borrowing for councils. All land sold to social housing providers becomes VAT free. These actions encourage more council homes, supported by an additional £1.5 billion for the social and affordable housing program.
Further measures include a £2.6 billion energy bills support package. This package will see approximately 20 million households in council tax bands A to D receive £100 this winter.
The government also draws a line on constant changes to building regulations. This includes removing biodiversity requirements for brownfield sites.