We found that the Lifetime ISA (LISA) has helped more than half of all users to buy a home five years sooner on average, in a new study commissioned as part of our ongoing campaign for the government to futureproof the LISA. The study shows that the LISA is not only a useful tool to help aspiring first-time buyers realise their dreams sooner, but also offers value for money for the government. Since 2021, the LISA has generated £1 billion for the treasury.
Other findings show that the LISA directly helps those who might otherwise struggle to get onto the property ladder – in 2024/25 those earning between £30,000-£40,000 a year contributed the most to their LISAs.
Beyond working towards homeownership, 81% of users say the LISA has improved their saving behaviour, and 84% feel more financially secure as a result of using it.
Our Chief Homebuying & Savings Officer, Cecilia Mourain, says: “As the UK’s leading Lifetime ISA provider, we see first-hand the difference this product makes. It helps young people across the UK save for their future, build financial confidence, and achieve life goals that might otherwise feel out of reach.
“This analysis unequivocally demonstrates the value and impact of this product. With a few considered measures to future-proof it for the next generation, LISAs can go even further in unlocking financial opportunity and resilience for generations to come.”
Read the full report here.
Moneybox Lifetime ISA
A Lifetime ISA can help you buy your first home, faster. With the Moneybox LISA you can:
- Get a 25% government bonus on every pound you save
- Earn a market-leading first year rate of 4.30% AER (variable), then 3.05%
- Save up to £4,000 and get a £1,000 bonus free each year
Start working towards your homebuying goals today.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Tax treatment depends on individual circumstances and may be subject to change in the future.
Remember: if you opt for the Stocks & Shares LISA, you’ll be investing, so your capital is at risk. All investing should be long term. The value of your investments can go up and down, and you may get back less than you invest.
% AER (annual equivalent rate) is the rate you will earn after a year, including compoundingThe return you earn on top of your investment gains by reinvesting your profits instead of withdrawing them.. The interest rate may change and we’ll inform you if it changes.