More than half (59%) of first-time buyers (FTBs) are now earning under £60,000, data from Twenty7tec found.
The firm warned that even double-income households are struggling to get on the property ladder, with affordability criteria leaving many buyers stretched.
Nakita Moss, head of lender at Twenty7tec, said: “Increasingly, the answer is found not in higher earnings, but in outside help.
“Many first-time buyers are on modest incomes, even as they reach their late 30s, which leaves very little room for error when it comes to affordability.
“This has led to people having to wait longer to save a deposit, often skipping smaller flats and moving straight into family-sized homes as they juggle career progression with starting families.”
Moss added: “From this, advisers are having to reassess how they guide clients on long-term affordability and risk.”
“When considering each of these factors, we predict that those stuck in ‘Generation Rent’ will choose unconventional methods to get on the ladder.
“We are already seeing a steady rise in group mortgages, with friends or family members buying together, as well as intergenerational households and co-ownership living models.”
She said: “Our data also shows that around one in seven first-time buyers (15.4%) are now aged over 40, while the number of those aged 51 and over purchasing their first home has risen by 80% in the last five years.
“Longer-term lending is no longer a niche product but an essential tool, with many mortgages now stretching well into retirement.
“For advisers, it means adapting conversations with clients, helping them think not just about getting onto the ladder but about sustaining affordability throughout the lifetime of the loan.”
She added: “What concerns us, is that if the two-salary ceiling becomes the new normal, what other implications can this mean for buyers, especially second steppers and those looking to buy in later life?
“One thing is for sure, the traditional path to home ownership is being redefined and without intervention, could we see an entire generation priced out of home ownership altogether?”
