Lifetime Isa saving scheme ‘stopping some from buying a home’

The lifetime Isa was launched in April 2017 and lets people put in up to £4,000 each year until they are 50. Photograph: Louisa Svensson/Alamy

A government scheme designed to help people save for their first home is preventing some from buying a property and leaving others thousands of pounds out of pocket, MPs and campaigners have said.

They are calling on ministers to conduct an urgent review of the rules that apply to the lifetime Isa – which lets people save for a first home or retirement – because of fears they are penalising some first-time buyers.