Mark Horne concludes:
The typical interpretations of Luke 10.25-37 and 18.18-30 along the lines of a Law-Gospel hermeneutic are obviously flawed and end up undermining the very doctrine they are trying to protect. They allow Jesus to actually encourage people to be justified by good works and then try to save the Reformation slogan sola fide (”faith alone”) by claiming Jesus really was using a clever ploy to get people to give up trying to be justified by good works.
A better interpretation allows Jesus to simply call people to repentance and faith. Because faith involves trusting God’s promises, it involves concrete actions. Nevertheless, such works are not meritorious nor an attempt to earn God’s favor. Rather they are manifestations of a trust in God to save us and take care of us.