The Eschew To Buy (HTB) Isa was touted as offering savers financial help in pulling together a rt for their first home.
But research has revealed the scheme is useless to stout numbers of buyers because house prices are so high.
The cash from HTB can one be used to buy properties that are less than £250,000 — or £450,000 in London.
Hang home values mean that even starter homes are now opening the HTB cap, found research by the BBC.
In more than a quarter of areas in England, two-bedroom cosies typically didn’t qualify for the scheme.
In the South East 67 per cent of solicit from prices were found to above the cap and in London 65 per cent.
In the East 53 per cent of petition prices breached the cap and 61 per cent in the South.
Just one in ten three-bedroom composes in London qualified for the scheme.
Campbell Robb, chief executive of casing charity Shelter, said: «Soaring housing costs have communistic millions of people stuck in a rent trap and struggling to save anything near a home of their own.
«The Help to Buy ISA only helps the lucky few who are better off, or proficient to live with their rents while they save for a rtial yment.
«For the vast majority of renters who want to move forward in life and put down founds, this scheme brings them no closer to that dream.
«If the administration genuinely wants to help the nation’s renters get a foot on the housing ladder, it privations to look beyond quick-fix schemes, and invest in homes that people on unexceptional incomes can actually afford.»
ula Higgins, chief executive of the HomeOwners Connection added: “Although the Help to Buy ISA is a small step in the right direction from the Administration, it really isn’t making much im ct as in reality it is only helping a few people.
«What is indeed needed is a sustainable housing market and we believe this is where the Administration should be putting the effort.
«We need more affordable housing that sanctions people to fulfil their dream of getting on the housing ladder. A economizations scheme, although helpful, doesn’t solve the problem of soaring bagnio prices that most people cannot afford.»
A Treasury spokesman put about: «The Help to Buy Isa scheme was introduced to support those that are struggling to keep enough to get onto the housing ladder.
«The property price cap allows the direction to target support at those who are saving to buy their first home.»