It means buyers now face losing the state bonus after years of diligent saving, as the property price cap for the scheme has remained frozen while house prices have shot up. Had the limit increased with inflation it would stand at around £336,000 today.

Help to Buy or Lifetime Isa?

Laura Suter, of stockbroker AJ Bell, said it meant first-time buyers would have to save for months longer to make up the £3,000 shortfall, or instead buy a lower value and potentially less desirable home in order to access the government bonus.

Ms Suter recommended would-be homeowners switch to a Lifetime Isa, which effectively replaced the Help to Buy scheme in April 2017.

Both schemes allow first-time buyers to save towards their first property purchase and benefit from a 25pc state bonus. However, Lifetime Isa savers can put £4,000 a year into their pot, earning a bonus of up to £32,000.

Savers can earn up to £1,000 in state top-ups annually until the age of 50, making the scheme far more generous. This is because the Lifetime Isa is also designed as a tool to help fund retirement, as well as initial property purchases. Lifetime Isa users can also buy properties worth up to £450,000, almost double the Help to Buy Isa limit for homes outside of London.

On top of this it is also possible to invest the money in a Lifetime Isa and use stock market growth to get on to the property ladder faster, while a Help to Buy Isa must be held in cash. With inflation at 5.5pc, its highest for 30 years, and house prices still growing at close to 10pc annually, investing a house deposit could be a smart move, Ms Suter said. This is particularly true for those who are more than five years away from purchasing a home, she added.