More than two million first-time buyers (FTBs) have missed out on buying a home since the financial crisis, research from the Building Society Association (BSA) has found.
The data showed that from 2006, about 7.2 million people or couples were expected to buy their first home, but only 5 million did.
That left 2.2 million so-called “missing” FTBs.
BSA said affordability remains the main problem, with house prices near record highs and mortgage rates up from previous lows.
New buyers now spend around 22% of their income on repayments, up from 18% in 2020.
In the BSA’s April 2025 Property Tracker, most FTBs ranked mortgage affordability as their top barrier, with deposit saving also a big issue.
The report also found most successful FTBs are stretching themselves, using higher loan-to-income (LTI) and loan-to-value (LTV) mortgages and taking on higher monthly repayments, often helped by wage growth.
Those who missed out in recent years are mainly younger people, especially under 30.
The BSA said future support needs to target both younger buyers and older groups who missed their chance earlier.
Many of the missing millions are stuck renting, where rent typically takes up a bigger slice of income than a mortgage would, according to the BSA.
Even with a 95% loan-to-value mortgage, only about one in five private renters could afford a £100,000 home, according to last year’s report.
BSA said the main problem is house price growth outpacing incomes, and called for a long-term Government strategy to make homes more affordable and available.
BSA has also asked for more focus on housing supply, not just demand, and noted that current house-building targets are unlikely to be met.
Policy and regulatory changes were also suggested, such as more flexibility for lenders and greater access to 95% mortgages.
It also called for a review of the cap on high loan-to-income (LTI) lending.
Paul Broadhead, head of mortgage and housing policy at the BSA, said: “I’m disappointed that 12 months on from our first report, which highlighted the struggles faced by first-time buyers and the potential roadmap for change, the barriers to homeownership remain the same today.
“It’s shocking that 2.2 million first-time buyers who would have reasonably expected to buy their own home have failed to do so since the financial crisis.
“And every day that passes without real action the number of potential lifetime renters is growing.”
Broadhead added: “We know that there is no single solution for all first-time buyers, and not all aspiring homeowners will be able to achieve their dream while the double affordability challenge of the high cost of buying and high cost of owning a home remains.
“However, our report outlines several tangible actions that can be implemented to help fix the broken housing market and to support the next generation of homeowners.”
