Lifetime ISAs have helped first-time buyers purchase an estimated £67.5bn of property since their introduction as the Government considers replacing the scheme.
More than 417,000 people had used a Lifetime ISA to buy their first home by April 2025, according to figures highlighted by savings provider Moneybox.
Its analysis puts the average property purchased with the help of a LISA at £266,758, while more than one million people are currently using the accounts to save towards either a first home or retirement.
The figures emerge as the future of the Lifetime ISA comes under scrutiny, with the Government consulting on a new First Time Buyer ISA which would eventually be offered in its place.
FIRST-TIME BUYERS
Lifetime ISAs allow savers to contribute up to £4,000 each year, with the Government adding a 25% bonus worth up to £1,000 annually. Current rules allow the money to be used towards a first home costing no more than £450,000.
Moneybox says its own LISA customers have accumulated more than £3.2bn towards property deposits since the product launched.
New constituency-level analysis from the provider puts Bristol East at the top for Moneybox LISA-supported purchases, with 1,364 homes bought.
Bristol North East follows with 1,198 purchases and Bristol South with 1,123, ahead of Didcot and Wantage at 996 and Dunstable and Leighton Buzzard at 980.
Moneybox forecasts that LISAs could help support one million first-time buyer purchases by 2036.
FUTURE OF LISA
The Government announced plans last year to develop a simpler savings product for first-time buyers and launched a consultation on its proposed First Time Buyer ISA in June.
Under the proposals, the new product would eventually be offered instead of the Lifetime ISA, although existing LISA holders would be able to continue saving under the current rules.
Brian Byrnes (main picture, inset), Director of Personal Finance at Moneybox, says: “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 argues that the existing scheme should be reformed rather than replaced, including changes to its withdrawal penalty and £450,000 property price cap.
He adds: “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.”
