Martin Lewis explains how one age group can turn £1 into more than £1,000

Martin Lewis has explained how people aged between 18 and 39 could turn £1 into thousands of pounds.

The MoneySavingExpert team aimed the advice at those who want to buy their first home with a lifetime ISA (LISA). Such accounts can be opened for just £1 and can be used to save up to £4,000 a year, with the money going towards either a first home worth up to £450,000 or put away for retirement.

A bonus can also be added to the account of up to £1,000 a year on top of what's saved. LISAs offer a significant 25 per cent government bonus on savings up to £4,000 per tax year, with the £1,000 annual contribution being tax-free, Wales Online reports.

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The funds from a LISA can be used to buy your first home just 12 months after its been opened. In order to qualify as a first-time buyer, a saver must have never previously owned a property, inherited, or had a trust or company own property on their behalf.

In this case, a LISA can be used for the purchase of a residential property in the UK valued at £450,000 or below. The buyer must take out a residential mortgage, although this excludes cash buyers or buy-to-let mortgages.

A LISA can also be used in government schemes such as Right to Buy and Help to Buy loans. If you want to buy a house with your partner, they can also open a LISA account to effectively double your savings.