00:00First-time buyers in Bristol, Belfast and Sheffield have been named the savviest in the UK
00:05after making the most of a government-backed savings scheme to get on the property ladder.
00:11Customer data from Moneybox revealed that the West Country city leads the way in using the Lifetime ISA,
00:18an account which tops up savings by 25% when used to purchase a home.
00:22The number of Lifetime ISA savers in Bristol grew by 8% in 2025,
00:28typically tucking away £16,285 to purchase homes worth an average of £322,727
00:39and unlocking a government bonus of £2,953.
00:45Across the city, this added up to almost £5 million in bonuses claimed by first-time buyers,
00:52while the national figure totaled nearly £140 million.
00:55Brian Burns, Director of Personal Finance at the Savings and Investing Platform, said,
01:01while Bristol has held on to the top spot, it's clear the popularity of the LASA is spreading,
01:07with cities like Nottingham entering the top 10.
01:10This suggests more buyers are widening their search to areas where house prices allow their savings to go further.
01:17The LASA's growing support for first-time buyers has come despite some of the toughest home buying conditions for generations,
01:25with high house prices and borrowing costs continuing to stretch affordability.
01:30Against this backdrop, the positive impact the LASA provides has never been clearer.
01:35The latest data comes as the government prepares to consult on a potential new savings product for first-time buyers.
01:41Research among 184 Moneybox LASA savers revealed that more than 8 in 10 of those surveyed
01:49claimed rising house prices relative to income and savings represent the biggest hurdle on their home buying journey,
01:57where 65% highlighted feeling priced out or uncertainty about affordability in their desired area.
02:04When asked how the government could better support them, 82% added the lifetime ISA property purchase price cap
02:11should be increased in line with house price growth.
02:14Nearly three quarters went on to say the unauthorised withdrawal penalty should be reduced or removed.
02:20Any new replacement by the government is not likely to launch until around 2028.
02:26You can use a lifetime ISA to buy your first home or save for later life.
02:31You can put into £4,000 each year until you're 50, but you must make your first payment into it
02:37before you're 40.
02:39The government will add a 25% bonus to your savings, up to a maximum of £1,000 a year.
02:46When you turn 50, you will not be able to pay into your lifetime ISA or earn the 25%
02:51bonus.
02:51However, your account will stay open and your savings will still earn interest or investment returns.
Comments