Bees

Female savers one step ahead on the property ladder when saving for their first home

23.08.2021

By Beehive Money

Ladies love LISA Article Image
Our new analysis has revealed that when it comes to saving for your first home, sisters are doing it for themselves (we hear you, Aretha!) as women pip men to the post for the number of active Lifetime ISA (LISA) accounts*.  The Lifetime ISA was introduced back in 2017 and is an account that enables those aged between 18-39 to open an account and save for their first home or retirement with an annual Government bonus of up to £1000 available for those saving the maximum of £4000 a year.  

Beehive Money, which is part of Nottingham Building Society, was the third provider to offer the cash Lifetime ISA and we now offer the account via our new app and website with a market-leading rate of 0.8% tax-free. Over 50,000 people hold a Lifetime ISA with Beehive and 52% of account holders are female so, although much has been discussed in the media around the pension shortfall for women, there’s no sign of a gender savings gap when it comes to the next generation of first-time buyers with Beehive Money.   

Here’s what Beehive saver, Anna Bailey (22), said about her LISA: “I’d been trying to save my 10% house deposit for a few years but always ended up dipping into my funds so never seriously got anywhere until I opened my LISA, which I can’t easily access and so the amount I’ve been putting in every payday has grown and grown.  

Anna Bailey 2

“With the 25% Government bonus, I could bring my plans forward by around eight months and have the deposit I needed.” 

Although you may think at 22, Anna is young to buy her first home, Beehive Money’s data shows that it’s never too early to start saving up for your deposit. 85% of Beehive’s LISA account holders are saving for their first home and although the majority of savers (39.1%) are between 25-32, a significant amount (36.6%) are under 25. 
 Age group % of LISA customers
 18-25 36.6%
 25-32 39.1%
 33-39 17.8%
 40+ 6.2%

Ben Osgood, Head of Beehive commented: “It’s our mission at Beehive to help people build a brighter future and the Lifetime ISA is a great route to that for first-time buyers dreaming of their first home. By starting early, younger generations are quickly getting into a good savings habit, with a little help from the Government, and Beehive Money, which bodes well for their future financial wellness.” 

Ben Osgood Beehive Money 023 Spokesperson

Beehive’s rate has increased from 0.5% to 0.8% on 26th January, meaning it will top the best-buy tables for new Cash Lifetime ISA accounts.  

*All data in this release is Beehive Money customer data from January 2022 and all rate details are correct at January 25.