Millions trapped in Help to Buy ISAs as house prices outstrip account allowances | Personal Finance | Finance [Video]

Millions of people could be trapped in Help To Buy (H2B) ISAs, with nearly 2.2 million currently open, new research has found.

A Freedom Of Information request made by the comparison site, Finder, found that these H2B ISAs currently hold a total value of almost £5.5 billion.

Previous research by Finder also found that the average house prices in 132 of 348 (38 percent) local authorities are currently above the current limit of £250,000.

This is projected to rise to over half (58 percent) of UK regions within four years at current rates. Since the H2B ISA was introduced in 2015, the average house price has increased by 38 percent, yet the limit has never increased.

It is no longer possible to open a H2B ISA, and they can no longer be paid into after 2029.

The Lifetime ISA (LISA) was effectively brought in to replace the H2B ISA and it helps resolve the …