People born between 1985 and 2006 can get £1,000 free money every year

A gardener has told how £1,000 a year in free money is offering him a "beacon of hope" to be able to buy a home with his partner. Stanley Fulker, 27, and his girlfriend Abbie were given just weeks to quit their flat when the landlord decided they needed the property back.

The couple are back living with Abbie's parents while they save to buy a property rather than "giving someone else" all their money through paying rent. They pay all their usual bills but the move has meant they are each managing to save £333 a month which they are paying into a lifetime ISA, known as LISAs.

And the move is giving them £1,000 each extra free money a year under an incentive offered to savers. A study by Financial mutual and lifetime ISA (LISA) provider, OneFamily, has found its average 25-year-old LISA account holder has landed a free bonus of £1,725.

The LISA was introduced in 2017 to help people get on the property ladder or save for a pension. Every time someone puts money away in their LISA, they receive a 25% bonus.

People with an account can put away up to £4,000 annually, which means they can get up to £1,000 for free every year. Anyone between the ages 18 and 39 can open a LISA account however it must only be used for buying a property or for retirement, otherwise people will face a penalty when withdrawing money for any other reason.

Stanley, who lives in Sussex, has a OneFamily LISA, said: "I opened my lifetime ISA in 2021 and it’s really helping me build up savings for our first home. I think it’s a fantastic way to save for a house.

"It offers a beacon of hope to getting on the property ladder, especially with the 25% bonus, which can mean up to an extra £1,000 a year. When I was renting, I felt like I was giving someone else all my money.

"So, we decided we didn’t want to rent forever and would buy our own home. I want to have our own place where we can put pictures up, paint the walls and make it ours.

“Abbie and I were previously living in a flat together, but the landlord said they needed the property back and we had two months to move out. We now live with Abbie’s family and although we are paying for rent, bills and food, we’re still able to save much more than if we were renting privately.

"We’re each putting aside about £333 per month, which will help us reach the maximum limit of £4,000 for the year and get the free bonus of £1,000 each. We don’t know exactly what type of property we want yet but I want it to have a garage.

"Abbie wants a disco floor, so if we had a spare room we’d put in some Saturday Night Fever style lights in. Ideally, we’d like to buy a house within the next five years, but we’ll have to see what happens and how much everything costs.”

Jackie Davies, Customer Operations Director at OneFamily, said, “It’s tough for young people who want to get on the property ladder. Price rises of everyday items and rent over the last few years have made it even more difficult to put money aside each month.

“The LISA helps aspiring homeowners take that first step onto the property ladder. Thousands of our customers have already made the most of the bonus and received free money from the government towards their first home.

"Young adults are facing difficult challenges, but there are tools out there to make savings go further and support people as they enter the next stage of their lives.”