Some first-time buyers had more than £50,000 to put towards the cost of their property in 2022-23 after saving into Lifetime Isas, according to HM Revenue and Customs (HMRC) figures.
Lifetime Isas, or Lisas, were launched to help people get a foot on the housing ladder or help them save for later life.
A freedom of information (FOI) request made to HMRC by money app Plum found that the top 25 Lisa withdrawals made to buy a home in the financial year 2022-23 averaged £51,000.
People can save up to £4,000 per year into an Isa up to the age of 50 and the Government will add a 25% bonus to savings, up to £1,000 per year.
Savers making withdrawals for any other reason than buying their first home or saving for later life face a withdrawal charge of 25%.
If someone is using a Lisa for their first home, the property must cost £450,000 or less.
HMRC’s figures only included “authorised” withdrawals – those who were eligible for the Government bonus.
More than 42,800 Lisa withdrawals to buy a home in 2022-23 were for at least £10,000, and among them more than 11,200 pots contained £20,000 or more.
Rajan Lakhani of Plum, which is offering a 4.75% Lisa rate, said: “Against a backdrop of recent global volatility it’s reassuring to know the Lifetime Isa can deliver stunning gains, regardless of the broader economic outlook.
“And don’t forget that this Government boost comes in addition to any interest you earn on savings.”
As part of its Lisa launch, Plum has created a digital tool to give savers an indication of how long it could take them to build the deposit necessary for a starter home in their desired postcode.
