- Over 80% of LISA savers report better saving habits and greater financial confidence
- 60% increase in number of first homes purchased with a Moneybox LISA in 2024
- Bristol, Manchester, and Belfast emerge as top hotspots for first-time buyers using the LISA in 2024
Moneybox, the UK’s largest provider of Lifetime ISAs (LISAs), has unveiled new data highlighting the critical role this savings product is playing in transforming financial habits and helping young people onto the property ladder.
Since its launch in 2017, c.1 million young people have chosen a Moneybox LISA to kickstart their savings journey, offering unparalleled insight into the impact of this incentivised savings scheme.
A recent survey of over 3,000 Moneybox LISA savers reveals how the product is not only helping first-time buyers achieve their homeownership dreams but also significantly improving financial behaviours and confidence.
- 82% of Moneybox LISA savers report that saving with a LISA has improved their overall savings habits.
- 84% feel more confident about their financial future since opening a LISA.
- 81% said that having a LISA had motivated them to save more frequently.
- 79% say they are saving more consistently, with 75% now saving weekly or monthly, up from 54% before opening their LISA.
- 67% state that the LISA is the first product they’ve used to save towards a major financial goal.
The LISA has grown in popularity, with an estimated 1.5 million young savers currently using one, according to HMRC’s latest figures. Moneybox has reported a 38% increase in new accounts opened in 2024 compared to 2023. Over the past year the number of home purchases funded with a Moneybox LISA jumped by 60%, with these first-time buyers managing to buy their first home on average 1 year sooner than non-Moneybox LISA savers.
Bristol, Manchester, and Belfast emerged as the UK’s top LISA homebuying hotspots in 2024, with Bristol seeing a 51% YoY increase in house purchases using the LISA. London also recorded a 49% rise in LISA-enabled home purchases.
Moneybox LISA savers withdrew £13.5k on average from their LISA to facilitate their house purchase in 2024 (+7% YoY) which included an average government bonus of £2.5k and they paid £270k on average for their first home (+2% YoY).
London based first time buyers who bought with a Moneybox Lifetime ISA last year saved 26% more YoY into their LISA with the average house purchase withdrawal now at £17,637 (including a £3.2k government bonus). The average property purchase price was £366k in London.
Approximately, 80% of Moneybox LISA savers earn £40k or less (UK average national salary is c.£37k), demonstrating how invaluable the savings scheme is among those who need it most.
Cecilia Mourain, Chief Homebuying and Savings Officer at Moneybox says: “Our data clearly shows just how valued the LISA is by UK savers. Not only has this fantastic savings product helped hundreds of thousands of savers get onto the housing ladder, but many have done so much sooner than would otherwise have been possible.
“The wider societal benefits of LISAs cannot be underestimated either. By enabling more people to get on the property ladder earlier and supporting their long-term savings, the LISA plays a critical role in promoting financial security and wealth creation across the UK.”
The LISA was designed with a dual purpose; to help young savers build their first home deposit and prepare for retirement. While right now it is primarily being used by young people to help them get their foot on the property ladder, the product is playing an increasing role in long-term financial planning. Moneybox customer research revealed that the vast majority (79%) of current Moneybox LISA savers would consider using the LISA to boost their retirement savings, with 47% saying they already intend to keep contributing to their LISA after buying their first home. 32% would consider doing so in the future. This is particularly important with new research from the IFS indicating that 30-40% of workplace employees will fall short of standard benchmarks in retirement.¹
Brian Byrnes, Head of Personal Finance at Moneybox comments: “For decades, homeownership has been viewed as the cornerstone of financial stability and one of the most effective ways to accumulate wealth due to the potential for equity growth over time. At Moneybox we believe, and see in our data, the positive savings habits that the LISA helps to build and embed—laying the foundation for long-term wealth building.
“To ensure its continued success, we believe future-proofing the LISA is essential. Doing so would give the next generation of first-time buyers the confidence and flexibility they need to save for their first home and beyond.”
First-time buyer LISA Hotspots
Table: Total house purchases enabled by Moneybox LISA, average withdrawal amount and average bonus
¹ https://ifs.org.uk/news/reforms-needed-millions-employees-track-inadequate-retirement-incomes