Over 50,000 first-time buyers used LISA (Lifetime Individual Savings Account) to purchase their first home in 2025, new data from Moneybox reveals. The government-backed savings scheme paid out £139.6 million in bonuses last year - a substantial injection into the FTB (first-time buyer) market. One first home was purchased every 10 minutes using Moneybox's LISA product.

These figures matter for SA (serviced accommodation) operators because FTBs are part of the broader property market. When more first-time buyers enter the market, housing stock tightens. This affects both purchase prices and the pool of tenants available for SA operators. Understanding where FTBs are buying also signals where local demand - and competition for property - is strongest.

The money behind first-time buying

The LISA scheme works through a simple mechanic: the government adds 25% to every pound a first-time buyer saves, up to £1,000 per year. Moneybox's data shows this works. Over 1.5 million people now use a LISA to save towards homeownership.

According to Moneybox's 2025 data, the average government bonus per FTB was £2,594 - real purchasing power in today's market. House purchases via Moneybox's LISA increased 12% year-on-year, signalling sustained momentum in the first-time buyer segment.

The government funds this scheme because FTBs face genuine barriers. Deposit requirements, affordability checks, and competing demands on savings make homeownership harder for younger buyers. LISA removes one friction point: the deposit gap.

Geography of first-time buyer demand

Three regions led LISA-funded purchases in 2025: Bristol, Belfast, and Sheffield. These aren't random. All three offer relatively affordable entry points compared to London and South East property markets. FTBs with limited capital naturally cluster where their money stretches furthest.

For SA operators, this regional data is useful context. Bristol and Sheffield have established BTL (buy-to-let) and SA markets. A rising FTB population in these cities signals growing rental demand - though from owner-occupiers entering the market, not from investors. Belfast, meanwhile, offers interesting longer-term demographic shifts as FTBs build equity.

The concentration in lower-cost regions also suggests where FTBs' future rental activity might cluster. Many FTBs later become landlords. Tracking their entry points tells you where rental market dynamics may shift in coming years.

What changes next

Moneybox's data arrives as the government prepares to consult on replacing LISA with a new first-time buyer savings product. This is the third such initiative in just over a decade - indicating ongoing policy change around FTB support. A new scheme could change how future first-time buyers save, alter bonus structures, or shift eligible property prices.

For now, LISA remains active and effective. The 50,000 FTBs who used it in 2025 prove demand is there. The £139.6 million in government support shows the financial backing behind the scheme. Whether a successor product matches this scale remains to be seen.