Martin Lewis' MoneySavingExpert website has explained how you can get £1,000 in free money each year to put toward buying your first home.
The advice came from the MSE weekly newsletter which came out today.
The newsletter highlighted Lifetime ISA (LISA) accounts, which allows savers to get a 25% bonus from the Government.
The most you can save in one tax year is £4,000, which means a potential bonus of up to £1,000.
You have to be between 18 to 39 to open a new LISA account, although you can keep saving in an existing account until your 50th birthday.
The newsletter advised savers that if they opened a LISA now and maxed it out over the next 12 months, the state will add a grand to the pot next year.
The 2023-24 tax year started on April 6 and will run until April 5, 2024.
If you plan on making a start on saving for your first home you need to be aware of the catches with LISAs.
Martin Lewis has repeated this advice each April over the last few years as you have to have the LISA open for a year before you get the bonus.
Also, you are only able to use the money on either your first property or your retirement - if you don’t, you’ll have to pay a penalty of 25% of the amount withdrawn.
If you don't think you'll be able to reach the £4,000 target over the next year, you shouldn't rule out opening a LISA.
This is because you'll still get the bonus on smaller amounts too.
So if you're only able to save £1,000 in one year, you'd get £250 from the Government.
However, you will only get the bonus on your contributions and not cash interest or investment growth.
If you're saving for your first home, you cannot have a LISA if you have purchased property before, the total property value of your first home must not exceed £450,000.
With house prices in the UK rising significantly over the last few years, Money Saving Expert is currently lobbying the Government to raise the maximum property price in line with house price inflation.
If you're putting money away for your retirement, you can only withdraw your cash once you reach the age of 60.
The maximum bonus you can get from the Government is £33,000 if you open your LISA at the age of 18, and max it at £4,000 every year out until you hit 50.
This is unless you're born on April 6, in which case the biggest bonus is £32,000.
