Dear LISA’s purchasing power
Edinburgh and Glasgow are both among the top-ten locations in which first-time buyers (FTBs) purchased homes using a Lifetime ISA (LISA) from wealth management platform Moneybox last year.
The research was carried out by Moneybox, based on data from more than 50,000 house purchases, for its annual FTB LISA Hotspots ranking table.
The LISA scheme offers savers up to £1,000 free from the government every year to help FTBs onto the property ladder. Across the UK in 2025, Moneybox LISA FTBs put forward deposits that benefited from an average government bonus of £2,594.
The Scottish Capital was in fifth spot in the ranking, followed by Glasgow in sixth. In Edinburgh, the average house price paid was £259,538, up 2.81 per cent on the previous year. In Glasgow, the average house price paid was up 4.57 per cent to £214,804.
Bristol, Belfast and Sheffield topped the ranking in first, second, and third place respectively.
Brian Byrnes, director of personal finance at Moneybox, says: “In 2025 alone, over 50,000 first homes were purchased with the help of a Moneybox LISA, that’s approximately one every ten minutes. This is a striking reminder of the role this product continues to play in helping people onto the property ladder.
“More impressive still is that the LISA’s growing support for first-time buyers has come despite some of the toughest home-buying conditions for generations, with high house prices and borrowing costs continuing to stretch affordability.
“The positive impact the LISA provides has never been clearer.”
The latest FTB LISA Hotspots data comes as the UK Government prepares to consult on a potential new savings product for FTBs. Against this backdrop, the research of hotspots underscores the importance of ensuring the needs of the more than one million current LISA users are considered at the heart of any consultation, according to Moneybox.
Some 83 per cent of current LISA customers surveyed by Moneybox said rising house prices relative to income and savings is the biggest hurdle to buying a home. Some 65 per cent felt priced out or uncertain about affordability in their desired area.
When asked about how government can better support them on their home-buying journey, 82 per cent said it should increase the LISA property purchase price cap in line with house price growth.
Brian adds: “We recognise that discussions about a potential first-time buyer product to be offered to new customers in place of the LISA have created some uncertainty. But it’s important to be clear – the Lifetime ISA is not going anywhere.“
The LISA remains open to new savers until a new product is available – probably in 2028 – and even when any new product is launched, existing LISA holders can save and invest into it indefinitely, continuing to benefit from the fantastic government bonus.”
He continues: “As the provider supporting the UK’s largest community of aspiring first-time buyers, we are working closely with HM Treasury to try and ensure that any future changes, or a new product, build on the strengths of the LISA, and deliver better outcomes for aspiring home owners overall.
“For now, the best thing prospective buyers can do is continue focusing on consistent saving and investing to make the most of the LISA government bonus.”
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