In London, the government Lifetime ISA savings scheme is increasingly reaching its practical limits. More than a third of property purchases by first-time buyers in the British capital now sit above the £450,000 eligibility threshold. This is shown by recent data from the portal reallymoving, as reported by PropertyWire.
The statistical trend highlights the growing momentum in the British metropolis market. Whilst in 2017 only 25.7 per cent of purchases by first-time buyers exceeded the £450,000 cap, this proportion rose to 34 per cent in 2026.
Growing discrepancy in the London housing market
The Lifetime ISA mechanism was designed to help young buyers take their first step onto the property ladder. In the capital's current market environment, however, the fixed price cap is creating growing hurdles, as a significant portion of available housing is traded outside this framework.
- —34 per cent of London purchases by first-time buyers were above the threshold in 2026
- —In 2017, this proportion stood at 25.7 per cent
- —The statutory price cap for the Lifetime ISA remains at £450,000
The analysis from reallymoving shows how significantly real price levels have decoupled from the parameters of the support scheme. For prospective homeowners, the unchanged limit results in noticeable restrictions when selecting properties across the capital.
Industry observers view the figures as evidence that standardised support limits are no longer adequately suited to the specific conditions of high-value metropolises such as London. The gap between the scheme's terms and actual transaction prices continues to widen.
