Lifetime Isa bonus matches Help to Buy in half the time

Ms Bowes said overall the Lifetime Isa offers a better proposition for some, as the annual allowance is greater and the bonus will be added each month, which means it will benefit from compounded income or growth.

She said: "In addition, the price of the property that can be purchased is £450,000 regardless of where the property is – with the Help to Buy Isa, the maximum property price outside London is £250,000.

"Possibly most importantly, the Lifetime Isa has to be held for 12 months before it can be used towards buying a home, whereas the Help to Buy Isa just requires you to have deposited £1,600, as the minimum bonus is £400 - so there is potential to use the Isa and the bonus after only three months."

Ms Bowes said the draw of the Lifetime Isa’s 25 per cent bonus was very appealing and first-time buyers should not miss out on this opportunity, but if savers were looking to buy a home in the near future, they will need to choose a Help to Buy Isa.