First-time property buyers in Bristol have been recognised as the most savvy in the UK, making the highest average savings by fully capitalising on the government’s Lifetime ISA (LISA) scheme.
According to data from Moneybox, these first-time buyers saved an average of £15,750 in 2024 through LISAs.
This saving, coupled with a government bonus of £2,895, enabled buyers in Bristol to purchase properties with an average value of £315,413.
Manchester’s first-time buyers were the second most successful, saving an average of £14,985 towards deposits on properties valued at £266,811, and receiving an additional government bonus of £2,777.
Belfast followed closely behind, with other cities where the LISA scheme was popular including Sheffield, Birmingham, Cardiff, Coventry, and Reading.
The LISA is available to individuals aged between 18 and 39, allows savers to deposit up to £4,000 annually and receive a 25 per cent top-up from the government.
HMRC’s latest statistics show that 1.5 million UK savers are currently utilising LISAs, with a staggering 78% primarily using them for house deposits, although it is also available for retirement savings.
The scheme’s popularity appears to be growing, as Moneybox reported a 38% increase in new LISA accounts in 2024 compared to the previous year.
Areas experiencing a surge in LISA-driven property purchases include Coventry, with an astonishing 81 per cent year-on-year growth, Belfast at 70 per cent, Cardiff at 69 per cent, and both Edinburgh and Glasgow in Scotland seeing a 54 per cent rise.
“The government bonus is a game-changer,” commented Brian Byrnes, head of personal finance at Moneybox, which has assisted a million LISA savers since its launch in 2017, “[Its] providing a significant boost to young savers and helping them develop positive habits early in life.”
This positive attitude towards saving was highlighted by the research as eight out of 10 LISA account holders believe they’ve become better savers after signing up.
According to the study, 81 per cent are encouraged to save more frequently, and 78 per cent feel they have been able to save in a more consistent manner
“Beyond homeownership, the Lifetime ISA serves as an effective gateway to more structured saving and investing habits,” further explained Byrnes.
“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.”