Skipton Building Society has seen a 1,384% increase in Lifetime ISA (LISA) account openings over the first weekend following the Government’s consultation on a new replacement First Time Buyer ISA (FTB ISA).
The surge highlights strong demand from potential first-time buyers for the existing product, the Connells owner said.
The uplift (Friday–Sunday compared to the previous week) comes amid heightened awareness of the scheme following the consultation announcement, as well as consumer commentary, including from Martin Lewis who is encouraging savers to act quickly by opening a LISA, to secure current benefits while details of the proposed new scheme remain uncertain.
LISA STILL HAS VALUE
Alex Sitaras, head of savings and partnership products at Skipton Building Society, says: “The immediate surge in LISA openings shows potential first-time buyers are highly engaged and ready to act.
“It also suggests people are responding to uncertainty around the benefits of any new scheme, while recognising the clear value and momentum behind the existing LISA. This reinforces the continued relevance of LISAs in helping customers build a deposit.
“As the Government consultation progresses, getting the balance right between the subscription limit, government bonus and property price cap will be crucial to ensuring the product works in practice, supporting realistic saving journeys while remaining simple and compelling.”
While the product can also be used for retirement, Skipton, one of the UK’s largest LISA providers with more than 160,000 savers, says the product remains firmly focused on homeownership, with just 12% of customers intending to use their LISA purely for their golden years.
Sitaras adds: “There is a strong case for revisiting current limits, which have been eroded in real terms, alongside maintaining a clear incentive structure such as the 25% bonus.
“Just as importantly, any new scheme must keep pace with the housing market. Our Skipton Group Home Affordability Index shows the average first-time buyer home will exceed the current price cap in around 10% of local authority areas across Great Britain by the end of 2027, underlining the need for a more flexible approach.”
