Martin Lewis urges Brits to take action if they want to buy homes worth £450,000

Financial expert Martin Lewis has issued an important alert to anyone considering purchasing homes valued at £450,000 amidst the ongoing Cost of Living crisis. A Lifetime ISA allows first-time buyers to save for a home, accruing extra money in the form of a Government bonus to put towards their new place. For every £4,000 savers put in, the state adds an extra £1,000 on top.

However, the money can only be used for a first home - or retirement - and must be used on a house which costs less than £450,000. He wrote: "Do you have (or have had) a Lifetime ISA? If so, especially if you worry about the £450,000 property cap please would you take a couple of minutes to answer our policy research survey."

The online poll clarifies its purpose: "We want to hear from people who have a Lifetime ISA or who had one in the past. We hope to use this information to support our campaigning on the Lifetime ISA. The answers you provide are anonymous and individual responses won't be shared." reports Birmingham Live. For money-saving tips, sign up to our Money newsletter here.

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One person messaged Mr Lewis on X with the message: "My main worry is that I'll find a partner who already owns a flat and would therefore take an enormous financial hit thru no fault of own." He responded: "As a) You wont buy a flat, in which case yes you would or b) as you'd later buy together, in which case you can still use the LISA (as long as property is under threshold) and get the bonus,".

Another added: "I live in London and only apartments are affordable at the £450K cap. A decent apartment (e.g. energy-efficient, quiet neighbourhood) hovers around £450K. My concern is that when interest rates decrease (and prices increase), buying an apartment in London will be infeasible." A third wrote: "House price in my area was capped at 250k, relatively useless. Seems like it's London and everywhere else just like most things... Doesn't meet it's intended purpose." Join our WhatsApp news community here for the latest breaking news.