BRISTOL has been named the most popular region among first-time buyers who have used the LISA savings and government bonus scheme to buy a property.
Using customer LISA house purchase withdrawal data, Moneybox revealed that the southwest city has been revealed as the top home-buying hotspot for the third year in a row.
Bristol has been named the most popular region among first-time buyers who have used the savings and government bonus LISA scheme to buy a property
The research shows a 13 per cent increase in the number of first-time buyers choosing Bristol in the last year.
The average property price was £314,307, and each withdrew £13,159 on average – including a 25 per cent government bonus – from their Lifetime ISA to put towards their deposit.
The second most popular region was Manchester, followed by Sheffield, Birmingham then Edinburgh.
The Lifetime ISA was launched by the government in 2017 to encourage younger people to start saving towards their first home or for a more comfortable retirement.
Those aged 18-39 can pay in up to £4,000 each tax year and get a 25 per cent government bonus on their savings – up to £1,000 extra for free each tax year.
So far, more than 118,000 homes been bought with a LISA, and recent data shows that the number of first time buyers using the product increased from 154,000 in 2017/8 to 553,000 in 2020/21.
Moneybox data shows that consumer demand is growing rapidly, with a 21 per cent increase in the number of LISA accounts opened each year.
Manchester, which took second spot in the hotspots list, saw a 24 per cent increase in LISA house purchases over the last year, with an average property purchase price of £256,305.
Sheffield jumped five places from the previous year into third place, with a 38 per cent increase and an average property price of £215,285.
Birmingham and Edinburgh saw modest yearly increases in the number of LISA homebuyers last year, with a two per cent and six per cent increase respectively.
But South East London entered the top 10 this year with a 41 per cent increase in LISA-enabled first-time buyers choosing to buy there.
The average property price paid by Moneybox LISA homebuyers in South East London was £367,524.
And although Glasgow dropped down to sixth place this year, the region has still seen a 10 per cent increase in popularity.
The Moneybox data also revealed that people are now starting to save with Lifetime ISA earlier in life, with customers now opening a LISA at the age of 26.
The Managing Director of Moneybox Homebuying, Cecilia Mourain, said: “There can be no doubt just how invaluable the Lifetime ISA has been, encouraging young savers to plan for their future and build positive saving habits early in life, resulting in many thousands being able to buy their first home far sooner than would otherwise have been possible.
“With rising costs of living continuing to put a strain on our day-to-day finances, if you do hope to own your own home someday, the opportunity to gain a 25 per cent cash bonus from the Government to boost your hard-earned deposit savings should not be taken for granted.
“You could gain as much as £32,000 in free cash from the government throughout your lifetime if you use the product as intended and while the Lifetime ISA may not be suitable for everyone who is eligible for it, we believe far more could be benefiting from the fantastic government bonus than are currently doing so.”
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