Overview
- The Treasury confirmed a consultation on a new product for first‑time buyers that removes withdrawal penalties, with retirement saving no longer included under reported plans.
- Reports say the 25% government bonus would stop being credited monthly and instead be paid as a lump sum on completion of a first‑home purchase.
- A target launch of April 2028 is widely reported, with existing Lifetime ISAs remaining available under current rules until the new scheme starts.
- Key rules are undecided, including whether the £450,000 property cap will change and how any investment growth or bonus funds would be treated before purchase.
- The overhaul sits alongside confirmed ISA changes that cut the cash ISA allowance for under‑65s to £12,000 from April 2027, while advisers warn the new approach could reduce returns and dampen incentives to save.