First-Time Buyers in Bristol, Belfast and Sheffield Lead UK in Government-Backed Savings Scheme
First-time buyers in Bristol, Belfast and Sheffield have been identified as the most astute in the United Kingdom, according to new data analysis. These savvy purchasers are maximising their use of the government-backed Lifetime ISA (LISA) scheme to accelerate their journey onto the property ladder.
The findings, derived from customer data covering over 50,000 house purchases through the savings and investment application Moneybox, highlight regional disparities in leveraging this financial tool. The Lifetime ISA permits savers to deposit up to £4,000 annually, with the government adding a 25% bonus of up to £1,000 when the funds are utilised for a first home purchase.
Bristol Tops the List with Significant Growth
Bristol secured the premier position, witnessing an 8% increase in LISA savers successfully buying properties during 2025. On average, first-time buyers in the city accumulated £16,285 in their Lifetime ISAs to purchase homes valued at approximately £322,727. This strategic saving unlocked an average government bonus of £2,953 per buyer.
Collectively, Bristol's first-time buyers claimed nearly £5 million in government bonuses. Nationally, the total bonus amount distributed to first-time buyers approached £140 million, underscoring the scheme's substantial impact.
Nottingham Experiences Rapid Adoption
Nottingham emerged as the area with the fastest growth in LISA-enabled house purchases, recording a remarkable 30% year-on-year surge. The relatively lower house prices in Nottingham, averaging £234,212, facilitated average deposits of £12,762, complemented by a government bonus averaging £2,379.
Brian Byrnes, Director of Personal Finance at Moneybox, commented: "While Bristol has maintained its leading status, the expanding popularity of the Lifetime ISA is evident, with cities such as Nottingham breaking into the top ten rankings. This trend indicates that more prospective buyers are broadening their property searches to regions where housing costs allow their savings to achieve greater purchasing power."
Top Three Cities and Regional Variations
Belfast and Sheffield completed the top three, with LISA-facilitated purchases increasing by 15% and 18% respectively. Manchester ranked fourth, where buyers in the North West acquired properties at an average price just below £270,000, withdrawing £15,361 from their Lifetime ISAs and receiving a £2,809 government bonus.
In Scotland, Edinburgh and Glasgow placed fifth and sixth. First-time buyers in Edinburgh withdrew £14,536 from their Lifetime ISAs for homes averaging £259,538, whereas those in Glasgow utilised £13,915 for properties averaging £214,804, highlighting a 21% price differential between the two cities.
Challenges and Calls for Reform
This data release coincides with governmental preparations to consult on a potential new savings product tailored for first-time buyers. Research involving 184 Moneybox Lifetime ISA savers emphasises the necessity of incorporating the needs of over one million current account users into any forthcoming consultations.
More than 80% of surveyed individuals cited escalating house prices relative to income and savings as the primary obstacle in their home-buying endeavours. Additionally, 65% expressed concerns about being priced out or facing affordability uncertainties in their preferred locations.
When questioned about potential governmental support enhancements, 82% advocated for an increase in the Lifetime ISA property purchase price cap to align with house price inflation. Nearly three-quarters (73%) suggested reducing or eliminating the unauthorised withdrawal penalty.
Brian Byrnes further noted: "Discussions regarding a new first-time buyer product have introduced some ambiguity, but the Lifetime ISA remains operational. It will continue accepting new savers until any replacement is introduced, likely around 2028, and existing customers can persist with their savings and investments indefinitely while receiving the government bonus. The current advice is straightforward: continue saving and maximise the bonus benefits."
Top 10 Lifetime ISA First-Time Buyer Hotspots
- Bristol: Average house price: £322,727. Average LISA savings: £16,285. Average government bonus: £2,953.
- Belfast: Average house price: £211,737. Average LISA savings: £13,237. Average government bonus: £2,503.
- Sheffield: Average house price: £224,628. Average LISA savings: £12,744. Average government bonus: £2,399.
- Manchester: Average house price: £269,255. Average LISA savings: £15,361. Average government bonus: £2,809.
- Edinburgh: Average house price: £259,538. Average LISA savings: £14,536. Average government bonus: £2,683.
- Glasgow: Average house price: £214,804. Average LISA savings: £13,915. Average government bonus: £2,556.
- Birmingham: Average house price: £266,451. Average LISA savings: £14,177. Average government bonus: £2,667.
- Nottingham: Average house price: £234,212. Average LISA savings: £12,762. Average government bonus: £2,379.
- Reading: Average house price: £336,078. Average LISA savings: £16,089. Average government bonus: £2,982.
- Coventry: Average house price: £283,706. Average LISA savings: £14,088. Average government bonus: £2,620.
