Skipton sees 1,384% surge in LISA account openings following ISA consultation announcement
The lender said account openings over the first weekend following the consultation announcement were almost 14 times higher than the previous week.
Skipton Building Society has reported a 1,384% increase in Lifetime ISA (LISA) account openings after the Government launched its consultation on a proposed First Time Buyer ISA.
The lender said account openings over the first weekend following the announcement were almost 14 times higher than the previous week, as prospective first-time buyers moved to secure access to the existing product.
The Government is consulting on a new First Time Buyer ISA, which would replace the current Lifetime ISA.
Skipton said the increase in applications reflected heightened awareness of the product and uncertainty over what any replacement scheme might offer.
The society also pointed to growing consumer interest following commentary from financial experts encouraging savers to open a LISA while the current rules remain in place.
Alex Sitaras, head of savings and partnership products at Skipton Building Society, said: “The immediate surge in LISA openings shows potential first-time buyers are highly engaged and ready to act.
“It also suggests people are responding to uncertainty around the benefits of any new scheme, while recognising the clear value and momentum behind the existing LISA. This reinforces the continued relevance of LISAs in helping customers build a deposit.”
He added: “As the Government consultation progresses, getting the balance right between the subscription limit, government bonus and property price cap will be crucial to ensuring the product works in practice, supporting realistic saving journeys while remaining simple and compelling.
“There is a strong case for revisiting current limits, which have been eroded in real terms, alongside maintaining a clear incentive structure such as the 25% bonus.”
He added that rising house prices were putting pressure on existing property price limits.
Sitaras said: “Just as importantly, any new scheme must keep pace with the housing market.
“Our Skipton Group Home Affordability Index shows the average first-time buyer home will exceed the current price cap in around 10% of local authority areas across Great Britain by the end of 2027, underlining the need for a more flexible approach.”
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