BRITSTOL'S first-time buyers have been named the savviest in the UK, making the most of a savings-boosting account to step onto the property ladder. Customer data from Moneybox reveals that the West Country city leads the way in utilising the Lifetime ISA (LISA) to buy a first home - which encourages 18-39 years olds to deposit up to £4,000 each tax year - with a 25% government top-up to put towards buying a home.
During 2024 Bristol’s LISA savers successfully put aside an average of £15,750 for their deposits, unlocking a government bonus of £2,895 - helping them secure properties worth an average of £315,413. Manchester ranked second, with first-time buyers saving an average of £14,985 towards deposits on properties priced at £266,811, benefiting from a £2,777 government boost. Belfast followed closely, where savers amassed £13,017 on average, receiving £2,437 in government support to purchase homes worth £194,071.
Other key LISA hotspots include Sheffield, Birmingham, Cardiff, Coventry, and Reading. Notably, Reading saw a 49 per cent increase in LISA-enabled house purchases over the past year, alongside an 11 per cent rise in LISA deposit savings, with first-time buyers there benefitting from an average government bonus of £2,950. South East London narrowly missed the top 10, with an average property price of £362,828.
LISA savers in the area contributed £17,497 towards their deposits, receiving a substantial £3,125 in government support to help navigate affordability challenges posed by rising house prices. According to HMRC’s latest figures, 1.5 million UK savers are currently using a LISA, which can also be used for retirement savings. Brian Byrnes, head of personal finance at Moneybox which has had one million LISA savers since 2017, said: "For many decades, homeownership has been viewed as a cornerstone of financial stability and one of the most effective ways to accumulate wealth due to the potential for equity growth over time.
"And so, it's great to see that the Lifetime ISA is being embraced across the UK, from major cities like Bristol to the remote Outer Hebrides, by people from all walks of life who need support to achieve this key financial goal in life. “The government bonus is a game-changer, providing a substantial boost to young savers to help set them on the right path to build and embed positive saving and investing habits earlier in life, which will help boost financial resilience and security over time.".
Regions experiencing the fastest growth in LISA-enabled house purchases include Coventry (81%, Belfast (70%), Cardiff (69%), and both Edinburgh and Glasgow (54%). Nationally, the average property price for LISA-enabled first-time buyers in 2024 stood at £270,000, with an average government bonus of £2,613. LISA savers across these hotspots have also managed to save approximately eight per cent more year-on-year into their Lifetime ISAs before withdrawing funds for their home purchase.
Findings from Moneybox customer, 38% increase in new accounts opened in 2024 compared to 2023, also revealed that 82% of users say that saving with a LISA has improved their financial habits. And 81%report feeling more motivated to save regularly, while 78% have become more consistent with their deposits. Prior to opening a LISA, 54% of users saved weekly or monthly, but this figure has since risen to 75%.
As a result, 87% feel more confident about achieving their financial goals, with 84% are more positive about their financial future overall. For 67% of users, the LISA is the first financial product they have used to save towards a major goal, such as purchasing a home. Right now, the LISA is primarily being used to save for a first home deposit for 78%. The majority (79%) of LISA savers would consider using the account to boost their retirement savings, with 47% saying they already intend to keep contributing to their LISA after buying their first home.
Brian Byrnes added: "The Lifetime ISA is an ideal gateway into more structured and purposeful saving and investing habits. For many, it’s not just about homeownership but also beginning to plan for retirement and financial stability in later life. “With continued awareness, accessibility, and future-proofing, the Lifetime ISA will continue to play a transformational role in helping young people achieve their financial goals and build wealth with greater confidence, no matter their starting point.".
