43% of renters thought they would own a home by now but have not managed to take the first step onto the property ladder , research from the Building Societies Association (BSA) found.
Among renters aged 25 to 44, this jumped to 59%.
About a third (31%) of 25 to 44 year olds believed they could buy within the next five years.
A similar proportion (33%) revealed that they wanted to buy, but did not think they would ever achieve it.
The research showed that since 2006, 7.2 million individuals or couples were expected to buy their first home, but only five million have done so.
That left 2.2 million missing first-time buyers (FTBs).
The BSA published its latest Property Tracker Survey which found affordability was a big concern.
Raising a deposit was the top barrier, cited by 61% of people, rising to 67% for FTBs.
Affording mortgage payments was also a problem for 60% of respondents, and 61% for those buying their first home.
Accessing a large enough mortgage was an issue for 43%, and 48% of FTBs.
Job security was becoming more of a concern, with 26% saying it was a barrier, up from 19% two years ago.
Confidence in the housing market stayed low.
Only 15% said now was a good time to buy, down from 20% in January 2025.
More than a third (36%) thought it was not a good time.
Nearly half (44%) expected house prices to rise in the next year, while just 12% thought they would fall.
Among renters aged 18 to 24, 86% wanted to get on the property ladder.
Over a quarter (28%) believed they would buy in the next five years, but 19% did not think they ever would, up from 12% five years ago.
Paul Broadhead, head of mortgage and housing policy at the BSA, said: “Our studies into first-time buyers show that they face the toughest conditions in over 70 years.
“That comes into sharp focus when you see the statistics of the number of people in rented accommodation who have been unable to achieve their dream of homeownership in line with their life plan.
“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.”
Broadhead added: “And the research shows how quickly that number is growing – in 2020 only 12% of 18–24 year olds felt homeownership was out of reach, today that figure has increased to 19%.
“We can’t remove the barriers to homeownership overnight, and there won’t be a solution that enables everyone to get on the property ladder.
“But there is more that can, and must, be done, including regulatory flexibility and Government focus on long-term solutions, such as increasing housing supply, rather than short-term demand-side boosts.”
He said: “Our first-time buyer reports provide several tangible actions that could be implemented to help fix the broken housing market and in turn support today’s aspiring homebuyers as well as the next generation.
“Every day that passes without real action raises the number of potential lifetime renters.”
