George Osborne has introduced a "radically more flexible ISA" to get more first time buyers on the property ladder.
Osborne stated that a new help-to-buy ISA will soon be available to Britons which will see the government chip in with the savings.
For every £200 that is saved for a deposit in the new savings product, the government will add an additional £50.
"It's as simple as this," said Osborne. "We'll work hand in hand to help you buy your first home."
He also said that, beginning in the Autumn, savers will be able to take money out of their savings accounts and if they have put the money back in by the end of the year, they will not miss out on any tax-free entitlement.
However, critics believe the government is still not doing enough to help the nation's youth get on the property ladder.
Gavin Littlejohn, founder and CEO at Money Dashboard, said: "Young people all around the UK dream of having an affordable home to call their own and today's budget has only done a little to help make that dream a reality."
Thomas Villeneuve, CEO and Founder of flatsharing network Weroom, added: "House prices are only going to continue to increase and the government needs to acknowledge that this is resulting in more and more people renting for longer.
"Unfortunately, we can't help but feel that an opportunity to help the growing number of flatsharers and renters in the UK has again been missed."