...By Solomon Thomas for TDPel Media.
Bristol is considered the most popular region in the UK among first-time homebuyers who have used the Lifetime ISA savings and government bonus scheme to purchase a property.
According to Moneybox, Bristol topped the list for three years in a row, with a 13% increase in the number of first-time buyers in the last year.
The average property price paid by these buyers was £314,307, and each person withdrew an average of £13,159 – including a 25% government bonus – from their Lifetime ISA to put towards their deposit.
Manchester took second spot on the list, followed by Sheffield, Birmingham, and Edinburgh.
The Lifetime ISA was launched by the government in 2017 to encourage younger people to get into the habit of saving towards their first home or a more comfortable retirement.
So far, over 118,000 homes have been bought with the LISA, and there has been a fivefold increase in the number of first-time buyers using the product, from 154,000 in 2017/18 to 553,000 in 2020/21.
Moneybox data shows that consumer demand is growing rapidly, having seen a 21% increase in the number of LISA accounts opened year-on-year.
Tips for homebuyers using LISA
Moneybox data reveals that people are starting to save with Lifetime ISA earlier in life, with customers opening a LISA at the age of 26, down from 29 in 2017/18.
Moneybox Homebuying Managing Director Cecilia Mourain believes that many more people could be benefiting from the fantastic government bonus, which can help young savers plan for their future and build positive saving habits early in life.
Mourain recommended that people be strategic in selecting the tasks to work on, re-think their mindset, change their situations, and watch a funny video to help restore mental energy.