The building society has reported a surge in uptake of savers investing in lifetime ISAs
Skipton Building Society has issued an ISA update ahead of major changes being rolled out by Chancellor Rachel Reeves.
The mutual recorded a dramatic 1,384 per cent rise in lifetime ISA account openings during the weekend immediately after the Government unveiled its consultation on a proposed first time buyer ISA replacement scheme.
The substantial increase, measured from Friday to Sunday against the preceding week, demonstrates considerable appetite among prospective homebuyers for the existing savings product.
Skipton, which ranks among Britain's biggest LISA providers, attributed the spike to growing public attention following the consultation announcement and heightened consumer interest in securing the current scheme's benefits before any changes take effect.
The rush to open accounts comes amid widespread uncertainty surrounding what advantages the proposed replacement scheme might offer savers.
Financial commentator Martin Lewis has urged people to move swiftly by setting up a LISA now, allowing them to lock in existing benefits while specifics of the Government's planned alternative remain unclear.
As it stands, the current Lifetime ISA provides a 25 per cent Government bonus on contributions, a feature that has proven popular with those saving towards their first property purchase.
Whether this incentive structure will be maintained under any new arrangement has yet to be confirmed through the consultation process.
Alex Sitaras, the 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."
He added that striking the right balance between subscription limits, the government bonus and property price caps would prove essential as the consultation progresses.
Mr Sitaras added: "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 per cent bonus."
Skipton currently serves more than 160,000 LISA customers, making it one of the largest providers of the product in the country.
The building society notes that the vast majority of its account holders are focused on buying property, with only 12 per cent intending to use their LISA solely for retirement savings.
Furthermore, the mutual has also raised concerns about the current property price cap becoming outdated.
According to Skipton's Home Affordability Index, the average first-time buyer property will exceed existing price limits in roughly 10 per cent of local authority areas across Great Britain by the close of 2027, highlighting the need for greater flexibility in any replacement scheme.