First-time buyers with LISAs buy their home four years earlier, Tembo finds

First-time buyers who use a lifetime ISA (LISA) to purchase their first property are on average four years younger than those who do not, research by Tembo has found.

In analysis of 3,894 customers who bought their first home between March 2023 and February 2024, Tembo revealed that the average age of buyers who used a LISA to buy their first home was 29, while those who bought without were 33.

Tembo’s data showed that overall, around one in six first-time buyers in the last year used a LISA when purchasing their first home, having saved £16,261 on average in their LISA.

The LISA funds account for an average of 37% of the total deposit of £43,859, while the additional £28,598 was from other savings over and above the annual LISA limit or from inheritance and gifts from family.

Household income levels for LISA customers was found to be £41,336, while for those not using a LISA, this was 60% higher at £66,000.

First-time buyers who are not using a LISA have a 42% larger total deposit, which many also include family gifts, with a total deposit size of £62,500, compared to £43,859 for LISA customers.

There was also a difference in average property prices, which were 13% higher for those not using a LISA at £247,000 compared to £217,863 for LISA customers.

Founder and chief executive officer at Tembo Money, Richard Dana, said: "The LISA is a really effective way for many buyers to reduce the time it takes to purchase their first home. With minimal Government support announced in the recent budget for homebuyers, the LISA offers young people a great opportunity to access much needed additional funds to bolster their deposit."



Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.