Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) enabling people with a Help to Buy ISA move their investment to a Lifetime ISA and (b) lifting the cap on house prices of a Help to Buy ISA in line with a Lifetime ISA from a purchase price of £250,000 to £450,000; and if he will make a statement.

The Government’s aim is to provide the opportunity for first-time buyers to enter the housing market. Both the Lifetime ISA (LISA) and the Help to Buy: ISA form part of the Government’s support in this area.

Individuals are generally able to transfer savings held in a Help to Buy: ISA to a LISA. For the duration of the 2017-18 tax year, savers with a Help to Buy: ISA could transfer their full balance to a Lifetime ISA as a transitional measure. However, any such transfers made from 2018-19 onwards are subject to the Lifetime ISA’s annual subscription limit of £4,000. This restriction is in place to ensure that the ISA regime remains simple and sustainable for consumers and providers alike. However, it is possible that a Help to Buy:ISA with a balance over £4,000 can be transferred in stages over multiple years.

The Help to Buy: ISA scheme’s property price cap of £250,000 for properties outside London (£450,000 within London) allows the Government to target support more precisely at the people the scheme is intended to help. The latest statistics show that since the scheme was launched in 2015, 460,567 property completions have been supported through the scheme with a mean property value of £175,680, compared to an average first-time buyer house price of £230,593.

The Government has no current plans to amend the terms of the Help to Buy: ISA but keeps all aspects of savings policy under review.