The homeownership dream has become out of reach for many, with 29% of people who want to buy saying they believe they will never be able to, research from the Building Societies Association (BSA) found.
The BSA’s Property Tracker survey highlighted that affordability is still the main issue.
Six in 10 (58%) first-time buyers (FTBs) said raising a deposit was the biggest hurdle, while 54% pointed to the cost of monthly repayments.
Nearly half (47%) said not being able to borrow enough was also a barrier.
More than a quarter (26%) said Stamp Duty tax was now a barrier, compared to just 7% three years ago.
Frustration with the homebuying process is at its highest level, with 14% seeing it as a major barrier, up from 10% in July.
This comes as the Government consults on ways to make buying and selling homes simpler and quicker.
Less than one in five (17%) said now is a good time to buy, while a third (33%) disagreed.
The net confidence score was -16%, up from -21% in the summer.
Almost half (44%) of non-homeowners said they expected to own a home by now, showing a gap between expectations and reality.
The research also found that 2.2 million would-be FTBs have been unable to buy since the financial crisis.
The number of 25 to 44 year olds who said homeownership was completely out of reach has risen from 27% in 2020 to 33% in 2025.
Paul Broadhead, head of mortgage and housing policy at the BSA, said: “For too many people, the dream of owning a home has turned into a sense of defeat.
“The financial barriers are well known, but it’s clear that policy uncertainty and the complexity of the process are now part of the problem too.
“Speculation about changes to property taxes may grab headlines, but it risks damaging confidence and creating unnecessary volatility.”
Broadhead added: “What buyers need most is stability, not stop-start interventions that distort the market.
“Building societies are working hard to support first-time buyers with flexible lending options and innovative mortgage offers.
“But lasting change requires a joined-up approach that focuses on housing supply, simplifies the buying process and creates the confidence that homeownership is achievable again.
“If we get that right, the future of the housing market can be a much brighter prospect for the next generation.”
