Stories

Thu, 04 Jun 2026

Thu, 04 Jun 2026 'I lost thousands in savings and my partner's money is in limbo'

The number of people withdrawing money from a LISA is outpacing the number using one to buy a home. Why?

* 13 London boroughs have median property prices above the LISA cap.
* More people (129,200) made unauthorized withdrawals from their LISAs in 2024-25 than authorized withdrawals for a house purchase (87,250).
* Young Londoners who used the scheme to buy homes reported difficulties finding properties within the price cap that met their needs.
* Some LISA users were forced to withdraw money and incur a 6.25% penalty due to high property prices in London.
* Those who withdrew their savings could not access the full 25% government bonus, which is given for authorized withdrawals.
* The penalty and cap are seen as hindrances to young people's ability to buy homes in London.
* Experts argue that the LISA needs reform, with suggestions including removing the withdrawal penalty and raising the property price cap.