A survey by Foresters Friendly Society showed three in five (58%) millennials saving for a deposit are now more confident about achieving their goal, following the stamp duty changes. One in seven said they are much more confident knowing they won’t have to pay stamp duty.

Foresters noted a low take-up of the Lifetime ISA among millennials who are saving for a deposit on a home. This is despite the fact that the product was developed in order to specifically help those under 40 years old in their long-term saving goals.

Take-up sits at just 11% of those eligible and this figure remains the same even among the third of respondents (33%) who view a house deposit as one of their current savings priorities.

Those who are saving for a house deposit are instead opting for savings accounts (43%), cash ISAs (27%), and current accounts (24%) as their preferred way to save.

Paul Osborn, chief executive of Foresters Friendly Society, said: “As young people continue to strive to get on the housing ladder, it’s hugely important they use the most suitable products to help them achieve their savings goals. While economic uncertainty tends to push people towards options deemed as lower risk, doing so can mean forfeiting much needed returns and makes the effort of saving for a house deposit feel even more of a struggle.

“While it’s encouraging that three quarters of those under 40 are aware of the Lifetime ISA, it is evident that more work needs to be done to help them understand the role that it can play in their long-term savings plan. The 25% government bonus offers significant savings support at a time when inflation continues to outstrip wage growth and is putting pressure on people’s savings.”