Lifetime ISAs have helped more than 417,000 people buy their first home since the savings product was launched in 2017, according to HMRC figures highlighted by Moneybox.
Moneybox said first-time buyers using Lifetime ISAs have purchased properties worth more than £67.5 billion across the UK, with the average value of homes bought through the scheme standing at £266,758.
The figures come as the future of the Lifetime ISA is under scrutiny, amid debate over potential changes to the product and the possibility of a new savings vehicle for first-time buyers.
A Lifetime ISA allows eligible savers to receive a 25% government bonus on contributions, worth up to £1,000 in each tax year. More than one million people are currently using the accounts to save towards a first home or retirement, according to Moneybox.
BRISTOL LEADS LISA PURCHASES
Constituency-level data from Moneybox shows Bristol East recorded the largest number of purchases supported by its Lifetime ISA, at 1,364. Bristol North East followed with 1,198 purchases and Bristol South with 1,123.
Didcot and Wantage recorded 996 purchases, while Dunstable and Leighton Buzzard had 980. Other areas in the top 10 included Edinburgh East and Musselburgh, Warwick and Leamington, Basingstoke, Stockport and Edinburgh North and Leith.
Among the constituencies covered by the data, Queen’s Park and Maida Vale had the highest average property value for purchases involving a Moneybox Lifetime ISA, at £398,765.
Moneybox said its Lifetime ISA customers have accumulated more than £3.2 billion towards deposits since the product was launched. Its data also shows Salford has the largest number of current active LISA savers, at 7,320, followed by Greenwich and Woolwich with 5,405 and Vauxhall and Camberwell Green with 5,217.
The provider forecasts that Lifetime ISAs could support a cumulative one million first-time buyer purchases by 2036.
CALLS FOR REFORM
Moneybox is arguing for changes to the existing Lifetime ISA rather than its replacement, including reforms to the withdrawal penalty and the property price cap.
Brian Byrnes, director of personal finance at Moneybox, said: “First-time buyers are facing some of the toughest buying conditions in a generation. Against that backdrop, the Lifetime ISA is a vital source of support: in 2025, a Moneybox customer used one to buy their first home every 10 minutes.
“Our data shows the difference the 25% government bonus can make, particularly for those who cannot rely on the bank of mum and dad to bridge the deposit gap. It is helping people turn long-term saving into a realistic route to home ownership.”
Byrnes added: “The Lifetime ISA has been helping first-time buyers for almost a decade, and it is working. It needs targeted improvements — including to the withdrawal penalty and house-price cap — but these changes can be made now for the people already relying on it.
“We should not replace a product that is already helping people buy a home every 10 minutes with a new first-time buyer ISA, adding further complexity for savers. Nor should people already relying on the Lifetime ISA have to wait until 2028 for much-needed improvements to the product.”
