Lifetime ISA savers take 16 months to buy first property
The average Lifetime ISA saver has been able to get on to the property ladder after 16 months, according to data from Skipton Building Society.
Skipton also reported a 20% uplift in first-time buyer mortgages, totalling 5,500 in 2018. This represents a return to pre-financial crash levels.
The building society’s 2018 data showed that the typical age of a Skipton first-time buyer is 31, with the average cost of a first property totalling £193,224. These buyers typically bought properties with two bedrooms, one bathroom and one living area.
In total, 3,641 houses were bought using Skipton’s Lifetime ISA in 2018, while the quickest time for a Lifetime ISA saver to become a first-time buyer was exactly one year.
The Lifetime ISA is available for those aged between 18 and 39 and offers a 25% annual bonus from the government on contributions made (which can total £4,000 each year). Savers are able to use the proceeds from the tax-efficient scheme to either buy a first home or to contribute towards retirement.
Alex Beavis, head of mortgages at Skipton Building Society, noted that the latest data dispels the myth that millennials are too busy spending money on brunch to get on to the property ladder.
“Market figures show that Skipton’s first-time buyer uplift is part of a far wider trend of increasing confidence and that young people are taking advantage of a flat housing market, as well as the government saving initiatives at their disposal,” he explained.