Analysts have stated that 2024 could be the "worst year ever" for the Help to Buy ISA, after the scheme was used to buy 10,977 properties in the three months to June.

The latest figures have revealed that on the current trajectory, 2024 will be the worst year for the scheme, with the number of purchases using Help to Buy ISAs falling by around 60% from its peak in 2021.

Since its launch in 2015, the scheme has supported 612,426 property completions.

Through enabling people saving for their first home to receive a 25% boost to their savings from the Government, 795,579 bonuses have been paid out, with an average bonus totalling £1,291, according to HM Treasury data.

The scheme closed to new entrants in November 2019, with existing customers still able to claim their bonuses until 2030.

However, Hargreaves Lansdown (HL) has warned that those in the scheme could "be thwarted by low savings limits and the cap on property values", with disappointing interest rates also affecting the ISA.

Head of personal finance at HL, Sarah Coles, said: "The Help to Buy ISA zombie is slowly stumbling to the bitter end. It has been almost five years since the Help to Buy ISA closed to new entrants, and although bonuses can be claimed until 2030, the number of people in the scheme is dwindling. The fact it’s a closed market means these ISAs are dying on their feet."

She added that the "Government hasn’t focused" on ensuring that the products remains useful.

The savings limits haven’t moved since the ISA was first introduced, meaning that after the first month of the account opening, only £200 can be paid in each month.

Furthermore, the Government cap is limited to £3,000, so the total deposit that can be built up is £15,000, which is less than 5% of the average property price in the UK.

Coles concluded: "If you have one of these ISAs, and you are frustrated by any of these many limitations, you can transfer to a Lifetime ISA (LISA) – as long as you qualify for one and have at least a year until you want to buy. The value of a property you can buy through the scheme is capped at a more generous £450,000 across the country. It also allows £4,000 to be paid in each year, and you can do it at any time during the year rather than being limited to monthly payments.

"If you need to keep it in cash you can earn up to 4.8%, and if you have longer than five years before you want to buy, Lifetime ISAs also offer a stocks and shares option, which provides even more potential for growth over the longer term. However, money that’s transferred will come out of your annual LISA allowance, so you’ll need to check it makes sense for your circumstances."

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