Almost half of the Lifetime Isa holders recorded this product to save for their first home, according to data from HMRC shows.
The survey showed that 46% of customers opened their accounts to buy a first home, while 45% did this to save for retirement or live later.
Lisas, launched in 2017, suggests people under 40 to open a Lisa and place a maximum of £ 4,000 every year until they are 50. At the end of each tax year this is topped up with a bonus of 25% of HMRC. It has a threshold cap of £ 450,000 when purchasing home.
With the schedule, customers can also save for their retirement.
The study comes after a critical report from the Treasury Committee in June, which states that the double objective of the product “more likely that consumers will choose unsuitable investment strategies”.
The government also said that “looking at options for reforms” when it comes to encouraging Isa’s to encourage investment money, with changes expected in the November budget.
The HMRC study showed that 90% of the Lisa holders said that the government’s bonus was a ‘very important’ factor that led them to open the account.
Lisas has attracted widespread criticism because it bears an early withdrawal costs of 25% if customers accept cash without buying a house, which effectively acts as an exit fine of 6.25% on their savings.
The study, which was conducted in January and was released this week, it appears that 11% of the Lisa holders had made unauthorized recordings by the time of the study.
This includes 3% that an unauthorized admission made to buy a home outside the Lisa rules, and 8% that for another reason has made an unauthorized recording.
However, when the economic secretary of the Treasury Emma Reynolds appeared for the Treasury Committee in April she defended early withdrawal sentenceS.
Reynolds said: “We cannot have a risk -free option to invest for the long term. We would not have that situation.”
According to the Treasury Committee, around £ 213 million was paid in recording costs of 286,000 people in the six tax years until April 2024.
MPs add that Lisas has been used since 2018–19 to buy 182,500 houses.
The average admission from Lisas to buy a house in tax year 2023–24 was £ 15,000.
Since 2017, 6% of adults who ever qualify have opened a Lisa, with around 1.3 million accounts.