More than 50,000 first-time buyers got onto the housing ladder using a Lifetime ISA in 2025 as industry voices warn against removing or weakening the scheme.
Data from Moneybox shows £139.6m in government bonuses were paid to its customers last year, with buyers receiving an average £2,594 boost towards deposits.
The figures highlight the continued role of the Lifetime ISA (LISA) in tackling affordability pressures, with house purchases via the product rising 12% year-on-year.
On average, a LISA-supported purchase took place every 10 minutes during 2025.
FIRST-TIME BUYER SUPPORT
The data lands as the government prepares to consult on a replacement for the LISA, the third major iteration of first-time buyer savings support in just over a decade.
Affordability remains the key barrier. More than four in five (83%) savers said rising house prices relative to income were their biggest challenge, while half pointed to the difficulty of building a deposit.
However, the LISA appears to be helping accelerate progress, with nearly six in 10 users saying it enabled them to save faster. Almost half said the monthly government bonus helped maintain saving discipline.
FUTURE FEARS
There are also growing concerns about what happens next. More than a quarter of savers fear they may not be able to transfer funds into any replacement product, while one in 10 worry existing users could be overlooked entirely.
Regionally, Bristol topped the list for LISA-supported purchases for the sixth consecutive year, followed by Belfast and Sheffield. Nottingham recorded the fastest growth, with a 30% increase in transactions.
HABIT BUILDING
Brian Byrnes, Director of Personal Finance at Moneybox, says: “Our data shows that the Lifetime ISA is doing what it was designed to do – helping first-time buyers onto the property ladder while building strong saving habits along the way.
“Replacing it with yet another first-time buyer ISA risks adding complexity rather than solving the real issues. Without clear, meaningful improvements, there’s a danger this becomes more ‘policy theatre’ than genuine reform.
“Any changes should build on these strengths – not lose them – and must protect the confidence of the 1.5 million people already using a LISA to save for their future.”
