Bristol, Belfast and Sheffield were the most popular locations for Lifetime ISA-backed first-time buyer purchases in 2025, according to Moneybox data.

Bristol has retained its position as the leading location for first-time buyers using a Lifetime ISA, as more than 50,000 purchases were completed through the product in 2025.

Figures from Moneybox show that Bristol, Belfast and Sheffield topped its annual ranking of LISA-supported purchases, based on a dataset covering more than 50,000 transactions, up 10% year-on-year.

The data highlights the continued role of the LISA in supporting buyers facing affordability constraints, with one property purchase completed every 10 minutes using a Moneybox LISA over the year.

ACTIVITY SPREADS BEYOND CORE CITIES

Bristol recorded an 8% annual increase in LISA-enabled purchases, with buyers using an average of £16,285 in savings to secure homes priced at £322,727. The average government bonus in the city reached £2,953, contributing to a total of £4.9 million in bonuses across the area.

Belfast and Sheffield followed in second and third place respectively, with year-on-year growth of 15% and 18%. Both cities continue to attract first-time buyers seeking relatively lower entry prices compared with southern markets.

Nottingham emerged as the fastest growing location within the top 10, entering in eighth place. Lower average property values of £234,212 enabled buyers to purchase with deposits averaging £12,762, supported by a £2,379 government bonus.

Other cities in the top 10 included Manchester, Edinburgh, Glasgow, Birmingham, Reading and Coventry, indicating a broad geographical spread of LISA usage.

ROLE OF THE LISA IN AFFORDABILITY

Across the UK, first-time buyers using a Moneybox LISA benefited from an average government bonus of £2,594 in 2025, underlining the product’s contribution to deposit building.

Brian Byrnes, director of personal finance at Moneybox said: “In 2025 alone, over 50,000 first homes were purchased with the help of a Moneybox LISA, that’s approximately one every ten minutes. This is a striking reminder of the role this product continues to play in helping people onto the property ladder.

“More impressive still is that the LISA’s growing support for first-time buyers has come despite some of the toughest home buying conditions for generations, with high house prices and borrowing costs continuing to stretch affordability.

“Against this backdrop, the positive impact the LISA provides has never been clearer.

“While Bristol retained the top spot, it’s clear the popularity of the LISA is spreading across the country with cities like Nottingham entering the top ten. This suggests more buyers are broadening their search towards areas where house prices allow their savings to stretch further.”

POLICY UNCERTAINTY AND FUTURE REFORM

The findings come ahead of a government consultation on a potential replacement savings product for first-time buyers, with more than one million current LISA users likely to be affected by any future changes.

Research conducted among Moneybox customers shows that 83% cite rising house prices relative to income as the biggest barrier to homeownership, while 65% report feeling priced out of their preferred areas.

There is also strong support for reform of the existing scheme, with 82% calling for the property price cap to rise in line with house price growth, and 73% suggesting the withdrawal penalty should be reduced or removed.

Byrnes said: “We recognise that discussions about a potential first-time buyer product to be offered to new customers in place of the LISA have created some uncertainty for aspiring first-time buyers.

“But it’s important to be clear, the Lifetime ISA is not going anywhere.

“The LISA remains open to new savers until a new product is available – likely 2028 – and even when any new product is launched, existing LISA holders can save and invest into it indefinitely, continuing to benefit from the fantastic government bonus.

“As the provider supporting the UK’s largest community of aspiring first-time buyers, we are working closely with HM Treasury to try and ensure that any future changes, or a new product, build on the strengths of the LISA, and deliver better outcomes for aspiring home owners overall.

“For now, the best thing prospective buyers can do is continue focusing on consistent saving and investing to make the most of the LISA government bonus.”