The First-Time Buyer ISA Consultation Has Closed: What Happens Next

Last Updated: 30 September 2026

The consultation on the First-Time Buyer ISA closed at 11:59pm on 18 August 2026, and the government has not published its response yet. If you hold a Lifetime ISA, or you are saving for a first home, nothing changes for you today: the Lifetime ISA carries on under its current rules, and you can still open one.

I’ve written in full about what the First-Time Buyer ISA is and what the consultation proposes. This is the shorter piece: where the reform stands now, and what to watch for next.

Lifetime ISA reform timeline: November 2025 Budget, consultation closed 18 August 2026, response awaited, then a First-Time Buyer ISA with no date set.

Where it stands now

In the November 2025 Budget the government confirmed that the Lifetime ISA, or LISA, will be replaced. In June 2026 HM Treasury opened a consultation on the design of the replacement, a simpler First-Time Buyer ISA, and it ran until 11:59pm on 18 August 2026. The Treasury is working through the responses now. Nothing changes for you in the meantime: if you already hold a Lifetime ISA you can keep paying in under the current rules, and you can still open one until the new account arrives.

What happens next

The Treasury reads the responses, then publishes its own. That response usually sets out what it heard and what it intends to do. The numbers that matter most here are not expected in it: the annual limit, the property price cap and the size of the bonus are all due to be set at a future fiscal event. The replacement account has no start date yet, so there is time.

When the detail lands
Two things to watch. The government’s response, which appears on the same consultation page on gov.uk, and the next fiscal event, where the limit, the price cap and the bonus rate are expected to be set. Until both have happened, the new account cannot be compared properly with the Lifetime ISA.

What about your own money in the meantime
This was a consultation, not a change, so the current rules still apply at the time of writing. If a Lifetime ISA fits your plans, opening or keeping one now holds you under the existing terms. If you’re not sure it fits, my guide to the Lifetime ISA walks through the bonus, the penalty and the age window. Check the current position on gov.uk before you act, and remember none of this is personal advice.

Can I still open a Lifetime ISA?
Yes. It stays open and unchanged until the replacement arrives, and no date has been set for that. The consultation closing does not change that.

When exactly did it close?
At 11:59pm on 18 August 2026. The government has not published its response at the time of writing, so check the consultation page on gov.uk for the current position.

Does this change my existing Lifetime ISA?
Not now. Current holders can keep contributing under the existing rules, and you can still open a Lifetime ISA until the replacement launches.

Key takeaways

  • The First-Time Buyer ISA consultation closed at 11:59pm on 18 August 2026, and the government has not published its response at the time of writing.
  • The annual limit, the property price cap and the bonus rate are still unset, and are expected to be settled at a future fiscal event.
  • The replacement First-Time Buyer ISA still has no start date.
  • Nothing changes today: current Lifetime ISA rules still apply, and you can still open one until the replacement arrives.
  • Check the current position on gov.uk before acting, as dates and details can change.

All figures are correct at the time of writing and can change, so always check gov.uk for the current numbers. The value of investments can go up and down, and you can get back less than you put in. This is general information, not financial advice. If you are unsure, speak to a regulated financial adviser.

About the author

David Treahearn

David is the author of The ISA Millionaire: The Way In, a jargon-free guide to building wealth through a Stocks and Shares ISA. He spent his early career as a recording engineer in some of the world’s most respected studios. From the outside, it looked like the dream. The bank balance said otherwise. A decade rising from project manager to Chief Operating Officer, watching how much of his pay went in tax before he ever saw it, turned him towards the ISA. With no financial background, he taught himself to invest, one mistake and one lesson at a time. He writes as a private investor, not a regulated adviser.

More about DavidThe book

New to ISAs? Getting Started puts fifteen articles in order, from the basics to building wealth.

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