First-time buyers in Bristol, Belfast and Sheffield have been named the savviest in the UK – after making the most of a government-backed savings scheme to get on the property ladder. Based on data covering more than 50,000 house purchases, customer data from saving and investment app Moneybox revealed areas across the UK maximising using a Lifetime ISA (LISA).
The scheme allows savers to pay in up to £4,000 per year and get a 25% government bonus of up to £1,000 on those savings when used to purchase a home. Bristol, which topped the list, saw the number of LISA savers getting on the property ladder grow by 8% in 2025.
First-time buyers in Bristol were found to be typically tucking away £16,285 to purchase homes worth an average of £322,727 and unlocking a government bonus of £2,953. Across the city, this added up to almost £5 million in bonuses claimed by first-time buyers, while the national figure totalled nearly £140 million.
Nottingham saw the fastest growth overall as Moneybox LISA enabled house purchases increased by 30% year-on-year, with lower house prices helping buyers secure average deposits of £12,762 towards homes worth £234,212, supported by an average government bonus of £2,379.
Brian Byrnes, director of personal finance at the savings and investing platform, said: “While Bristol has held onto the top spot, it’s clear the popularity of the LISA is spreading, with cities like Nottingham entering the top ten.
“This suggests more buyers are widening their search to areas where house prices allow their savings to go further.
“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 cost continuing to stretch affordability.”
Belfast and Sheffield completed the top three, with LISA-enabled purchases rising by 15% and 18% respectively.
Manchester placed fourth on the list, with those in the North West buying properties at an average just shy of £270,000. Buyers withdrew £15,361 for their purchase and received a £2,809 government bonus in the process.
North of the border, Edinburgh and Glasgow – which ranked fifth and sixth respectively – saw first‑time buyers withdrawing £14,536 and £13,915 from their LISAs. However, first‑time buyer house prices in Edinburgh were 21% higher, averaging £259,538 compared with £214,804 in Glasgow.
The latest FTB LISA Hotspots data comes as the government prepares to consult on a potential new savings product for first‑time buyers. Research among 184 Moneybox LISA savers shows the importance of ensuring the needs of the more than one million current users of the accounts are considered at the heart of any consultation.
More than eight in 10 (83%) of those surveyed claimed rising house prices relative to income and savings represent the biggest hurdle on their home‑buying journey. Whereas 65% highlighted feeling priced out, or uncertainty about affordability, in their desired area.
When asked how the government could better support them, 82% added the Lifetime ISA property purchase price cap should be increased in line with house price growth. Nearly three quarters (73%) went on to say the unauthorised withdrawal penalty should be reduced or removed.
Brian Byrnes added: “Talk of a new first-time buyer product has created some uncertainty, but the LISA isn’t going anywhere.
“It’ll stay open to new savers until any replacement launches – likely around 2028 – and existing customers can keep saving and investing indefinitely with the government bonus.
“For now, the message is simple: keep saving and make the most of the bonus.”
TOP 10 LIFETIME ISA FIRST‑TIME BUYER HOTSPOTS:
Bristol
Average house price paid of £322,727 (up 2.32% year-on-year). First-time buyers saved an average of £16,285 in their LISA towards their deposit (up 3.39%), receiving an average government bonus of £2,953.
Belfast
Average house price paid of £211,737 (up 9.25% year-on-year). First-time buyers saved an average of £13,237 in their LISA towards their deposit (up 1.72%), receiving an average government bonus of £2,503.
Sheffield
Average house price paid of £224,628 (up 3.64% year-on-year). First-time buyers saved an average of £12,744 in their LISA towards their deposit (up 0.41%), receiving an average government bonus of £2,399.
Manchester
Average house price paid of £269,255 (up 0.92% year-on-year). First-time buyers saved an average of £15,361 in their LISA towards their deposit (up 2.51%), receiving an average government bonus of £2,809.
Edinburgh
Average house price paid of £259,538 (up 2.81% year-on-year). First-time buyers saved an average of £14,536 in their LISA towards their deposit (down 0.19%), receiving an average government bonus of £2,683.
Glasgow
Average house price paid of £214,804 (up 4.57% year-on-year). First-time buyers saved an average of £13,915 in their LISA towards their deposit (up 0.96%), receiving an average government bonus of £2,556.
Birmingham
Average house price paid of £266,451 (up 2.03% year-on-year). First-time buyers saved an average of £14,177 in their LISA towards their deposit (down 0.78%), receiving an average government bonus of £2,667.
Nottingham
Average house price paid of £234,212 (down 2.47% year-on-year). First-time buyers saved an average of £12,762 in their LISA towards their deposit (down 4.26%), receiving an average government bonus of £2,379.
Reading
Average house price paid of £336,078 (up 2.08% year-on-year). First-time buyers saved an average of £16,089 in their LISA towards their deposit (up 1.96%), receiving an average government bonus of £2,982.
Coventry
Average house price paid of £283,706 (up 3.74% year-on-year). First-time buyers saved an average of £14,088 in their LISA towards their deposit (up 0.77%), receiving an average government bonus of £2,620.
