First-time buyers in Bristol have been named the most astute in the UK, making the most savings on average by fully utilising the government-backed Lifetime ISA (LISA) scheme to get onto the property ladder.
Data from Moneybox shows that first-time buyers in Bristol set aside an average of £15,750 in 2024 using LISAs. The scheme earned them a government bonus of £2,895, meaning they could buy properties with an average value of £315,413.
The Lifetime ISA, open to individuals aged 18-39, allows savers to deposit up to £4,000 each year and receive a 25% top-up from the government.
Buyers in Manchester came in second, saving an average of £14,985 for deposits on properties valued at £266,811, and receiving an additional government bonus of £2,777.
Belfast was next, while other cities where the LISA scheme was popular included Sheffield, Birmingham, Cardiff, Coventry, and Reading.
HMRC’s latest figures reveal that 1.5 million UK savers are currently taking advantage of LISAs, with a whopping 78% using them mainly for house deposits.
And it seems the scheme is growing in popularity as Moneybox reports a 38% surge in new LISA accounts in 2024 compared to the previous year.
“The government bonus is a game-changer,” said Brian Byrnes, head of personal finance at Moneybox, which has aided a million LISA savers since its inception in 2017, “[Its] providing a significant boost to young savers and helping them develop positive habits early in life.”
Before adopting a LISA, only 54% of savers were making regular weekly or monthly deposits a number that has since climbed to an impressive 75%. This shows a move towards more structured saving practices, with the LISA also reported to bolster financial assurance.
Moneybox’s study reveals that a staggering 82% of LISA holders believe the account has improved their saving behaviour, 81% feel more driven to save on a regular basis, and 78% have become more consistent with their savings contributions.
“Beyond homeownership, the Lifetime ISA serves as an effective gateway to more structured saving and investing habits,” Byrnes commented.
“With continued awareness and accessibility, the scheme will continue to help young people achieve their financial goals and build wealth, no matter their starting point.”
