Potential first-time buyers have opened a Help to Buy ISA account every 30 seconds since the scheme was launched on 1 December 2015.
Help to Buy ISA holders will receive a 25% government top-up on the total saved between £1,600 and £12,000 when purchasing their first home.
So far 250,000 first-time buyers have opened the ISA.
George Osborne, Chancellor of the Exchequer, said: “Last year I announced further help for first time buyers with the new Help to Buy: ISA and I’m delighted that a quarter of a million people have already taken advantage. It is all part of our plan to back working people who are doing the right thing and saving for their first home.”