The short answer: Budget 2026 announced a new First Time Buyer ISA from April 2029. It is planned to replace the Lifetime ISA for new savers from 6 April 2029.
What has been announced
- Contributions of up to £4,000 a year.
- A 25% Government bonus.
- A qualifying first-home price cap of £450,000.
- A maximum bonus of £20,000.
- No upper age restriction for the new product.
What happens to existing Lifetime ISA holders?
Existing LISA holders can continue contributing to and using their accounts under the current rules. From 29 October 2026, the withdrawal charge for an existing LISA holder buying a qualifying first home above the £450,000 price cap is reduced from 25% to 20%. The 25% charge for unauthorised withdrawals remains.
This is a Government announcement rather than personal savings advice. The detailed product rules should be checked when the official account and application guidance is published.
