First-time buyers are using the government backed LISA scheme but some areas of the country are saving more than others
First-time buyers in Bristol have been named the most astute in the UK, making the most of the government’s Lifetime ISA (LISA) scheme to get a foot on the property ladder.
According to customer data from Moneybox, first-time buyers in Bristol are leading the pack in savings, during 2024 savers stashed away an average of £15,750 through LISAs. This savvy saving earned them a government bonus of £2,895, helping them secure properties with an average value of £315,413.
The Lifetime ISA, open to those aged 18-39, allows savers to deposit up to £4,000 each year and receive a generous 25% top-up from the government. Despite also being available for retirement savings, the scheme has proven especially beneficial for homebuyers.
Bristol isn’t the only city seeing success. Manchester’s buyers came in second place, saving an average of £14,985 towards deposits on properties valued at £266,811, and bagging an extra government bonus of £2,777.
Belfast was next in line and other cities where the LISA scheme were popular included Sheffield, Birmingham, Cardiff, Coventry, and Reading.
The latest data from HMRC reveals that 1.5 million UK savers are currently utilising LISAs, with a whopping 78% primarily using them for house deposits.
In 2024, first-time buyers across the UK who used LISAs purchased properties averaging £270,000 in value, enjoying an average government bonus of £2,613.
The LISA scheme’s popularity is on the rise, with Moneybox reporting a significant 38% surge in new LISA accounts opened in 2024 compared to the previous year.
Regions witnessing a boom in LISA-fuelled house purchases include Coventry (up a staggering 81% year-on-year), Belfast (70%), Cardiff (69%), and Scotland’s Edinburgh and Glasgow (both at 54%).
Brian Byrnes, head of personal finance at Moneybox, which has backed one million LISA savers since 2017, remarked: “For many decades, homeownership has been viewed as a cornerstone of financial stability and one of the most effective ways to build wealth through equity growth over time.
“It’s incredibly encouraging to see the Lifetime ISA embraced across the UK from cities like Bristol to more remote areas such as the Outer Hebrides by people from all walks of life looking to achieve this crucial financial milestone.”
“The government bonus is a game-changer, providing a significant boost to young savers and helping them develop positive habits early in life. This not only aids homeownership but builds long-term financial resilience and security.”
Prior to using a Lifetime ISA (LISA), just 54% of savers consistently put money aside weekly or monthly a number that has surged to 75% post-adoption.
Now with a LISA the research shows an impressive 82% of users felt their financial habits had improved. Furthermore, 81% disclosed they were more inspired to save on a regular basis, and 78% reported increased consistency in their contributions.
“Beyond homeownership, the Lifetime ISA serves as an effective gateway to more structured saving and investing habits,” Byrnes noted. “With continued awareness and accessibility, the scheme will continue to help young people achieve their financial goals and build wealth, no matter their starting point.”