The Lifetime ISA (LISA) helped more than 50,000 first-time buyers (FTB) onto the property ladder in 2025, according to new data from Moneybox.
Used by more than 1.5 million young people nationwide, £139.6m in government LISA bonuses were paid out to Moneybox customers last year alone, with FTBs getting an average boost of £2,594 to overcome high deposit hurdles. Overall, house purchases using a Moneybox LISA were up 12% year-on-year, with a first home bought every 10 minutes in 2025.
The data, published in Moneybox’s annual FTB LISA Hotspots – which named Bristol, Belfast and Sheffield as the top locations for LISA enabled house purchases in 2025 – underlines the scheme’s role in helping young people get on the property ladder, far sooner than would otherwise be possible. The findings come as the Government prepares to consult on replacing the LISA with a new FTB savings product – the third in just over 10 years.
Against this context, a recent survey of Moneybox LISA savers highlights the importance of safeguarding the benefits of the LISA. While over four in five (83%) say rising house prices relative to their income are the biggest barrier to homeownership, half (50%) said saving a large enough deposit in a reasonable timeframe was also a significant challenge.
However, by using the LISA, almost 6 in 10 said they’d been able to save a deposit faster than would have otherwise been possible, and almost half (49%) credited the government bonus being paid monthly as motivation to keep them saving consistently.
When asked how the LISA could be improved, over eight in ten (83%) want the property price cap (currently £450,000) to increase in line with house prices, and three-quarters (75%) want the withdrawal penalty to be reduced or removed to give them more flexibility.
However, with a new product under consideration, there are broader concerns about how existing LISA savers will be supported. More than a quarter (27%) are concerned they may not be able to transfer their LISA savings into any new product if desired. Meanwhile, one in ten (10%) are concerned that a shift in focus toward a new product could leave the needs of existing LISA savers overlooked in future.
Brian Byrnes, Director of Personal Finance at Moneybox, said: “Our data shows that the Lifetime ISA is doing what it was designed to do—helping first-time buyers onto the property ladder while building strong saving habits along the way.
“Replacing it with yet another first-time buyer ISA risks adding complexity rather than solving the real issues. Without clear, meaningful improvements, there’s a danger this becomes more ‘policy theatre’ than genuine reform.
“The LISA’s monthly government bonus is a big part of what makes it work. It keeps people motivated, builds momentum, and helps turn long-term goals into real progress.
“Any changes should build on these strengths—not lose them—and must protect the confidence of the 1.5 million people already using a LISA to save for their future.”
Across the country more widely, Moneybox’s LISA hotspots data highlights where the scheme is having the greatest impact. Bristol ranked as the top location for LISA-enabled purchases for the sixth consecutive year, with transactions rising 8% year-on-year. Savers in the city contributed an average of £16,285 towards deposits, unlocking an average government bonus of £2,953 for homes worth £322,727.
Belfast and Sheffield also saw significant growth, with purchases rising 15% and 18% respectively.
The fastest growing region for LISA-enabled house purchases was Nottingham as a new entry in eighth, seeing year-on-year growth of 30%. Lower house prices enabled buyers to secure homes worth £234,212 on average, supported by deposits of £12,762 and a £2,379 bonus.
