MORE than one million Help to Buy ISAs have now been opened since the scheme was launched in 2015, helping many save towards their first home, figures show.

It means that first-time buyers have squirrelled away more than £1.8 billion in their ISAs.

The Government’s Help to Buy ISA scheme was launched to provide new buyers with the opportunity to save up to £200 a month, with the Government topping up their contributions by 25 per cent, up to a maximum of £3,000.

Secretary to the Treasury, Stephen Barclay, said: “Our Help to Buy schemes continue to prove hugely popular across the country, as we support people to get on in life and achieve their dream of climbing the housing ladder.”

First-time house buyers across the UK can open an ISA, which is available for home purchases up to £250,000, or £450,000 in London. If a person plans to buy a home with someone who also qualifies, they are each able to separately claim the bonuses on their savings.

The scheme has been hugely popular, with the equivalent of 1,500 Help to Buy ISAs being opened every day since its introduction. The number of providers of the scheme, which includes banks, building societies and credit unions, has doubled since its launch to 28.

Savings in a Help to Buy ISA are tax-free. Savers can receive on average a 2.4 per cent interest rate.

First-time buyers will be able to open a Help to buy ISA until 30 November 2019.