Property data reveals over 56,000 homes were purchased – with the help of an Lifetime ISA

First-time buyers could have missed out on up to £244 million of ‘free money’ last year because they didn’t take advantage of a government-backed savings scheme designed to help boost their deposit.

Most recent HMRC data shows 56,100 people got their first foot on the property ladder with the help of a Lifetime ISA (LISA) during the 2022/2023 tax year.

A LISA is an incentivised savings product designed to help young people build long-term savings habits to help them buy their first home or save for a comfortable retirement.

From the age of 18, savers under 40 can pay in up to £4,000 each year until they reach 50 and the government will add a 25% bonus to savings – added monthly – up to a maximum of £1,000-a- year.

However, records show that during the last full tax year (2022/2023), there were approximately 300,000 recorded first-time buyers in the UK.

That means as many as 243,900 first-time homeowners missed out on a 25% government bonus on their deposit savings – up to £1,000 of ‘free money’ last year alone.

First-time buyers overlooking Lifetime ISAs results in them losing out on £244million in ‘free money’(Image: Getty Images)

With saving for a deposit now estimated to take an average of 10 years, had all those who bought their first home last year saved for a deposit with a Lifetime ISA, paying in £4,000 each tax year, they would have had a deposit of £50,000 for their first home.

This is made up of £40,000 of direct savings contributions, and an additional £10,000 of ‘free money’ via the government bonus.

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