Lifetime ISA (LISA)
Save up to £4,000 per year and get a 25% government bonus towards your first home deposit.
Reviewed and signed off by Patricia Ogunfeibo
Solicitor and Chartered Tax Adviser, both non-practising. UK property since 1986.
Last reviewed
- Applies to:
- England
- Last reviewed:
- Next review:
- October 2026
Checked against GOV.UK. Sources are listed at the end of this guide.
Scheme and lender rules can change. How we label evidence.
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Executive Summary
The Lifetime ISA (LISA) is a savings account designed for first time buyers and retirement savers. You can save up to £4,000 per year, and the government adds a 25% bonus on top, giving you up to £1,000 in free money each year towards your deposit. Open one early to start the 12-month qualifying clock.
How the Lifetime ISA Works
The Lifetime ISA (LISA) (gov.uk) is a savings account designed for first time buyers and retirement savers. You can save up to £4,000 per year, and the government adds a 25% bonus on top, giving you up to £1,000 in free money each year towards your deposit.
- Age: You must be aged 18 to 39 to open a LISA. You can continue saving until age 50
- Property price cap: £450,000. You can only use the bonus towards a property costing £450,000 or less
- Minimum holding period: The account must be open for at least 12 months before you can use the funds to buy a home
- Withdrawal penalty: If you withdraw for any purpose other than buying a qualifying first home or after age 60, a 25% penalty applies. This means you lose approximately 6% of your own savings
- Can be combined with: First Homes, Freedom to Buy, and shared ownership
**Not for later-life buyers.** You cannot open a LISA after 40 and you cannot contribute after 50, so if you are buying in your 50s, 60s or beyond the LISA is not a route for you. See the later-life section of the Affordability & Deposit Alternatives guide instead.
LISA Future
Following the Autumn Budget 2025, the government announced a consultation on the future of the LISA, expected in early 2026. The £450,000 property price cap has been frozen since the LISA launched in 2017, which limits its usefulness in areas with higher property prices. Open a LISA early to start the 12 month clock, even if you can only contribute a small amount initially.
Action Checklist
Where this comes from
Each source is labelled so you can tell a government rule from market practice, and both from our own view. Read our evidence standard.
- Government ruleGOV.UK, Lifetime ISA
- Government ruleHMRC, Lifetime ISA guidance for savers
- Our guidancetenant2owner editorial standards and our own interpretation
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