Millions of would-be homebuyers are losing confidence that they will ever get on the property ladder, research suggests.

A report by the HomeOwners Alliance found that 73% of non-homeowners want to own their home. But among those who aspire to buy, 52% doubt they will ever be able to do so.

Aspiring first-time buyers are markedly more pessimistic than the wider public. More than half, at 51%, believe currently is a bad time to buy, compared with 35% of British adults overall.

The annual HomeOwner Survey highlights the financial barriers stopping people from getting on or moving up the property ladder.

Some face very real affordability barriers, but others may be counting themselves out because of outdated assumptions about deposits.

Paula Higgins, chief executive of the HomeOwners Alliance, (pictured), says: “It is deeply concerning that more than half of aspiring homeowners believe they will never get onto the ladder.

“Some face very real affordability barriers, but others may be counting themselves out because of outdated assumptions about deposits, borrowing limits or their eligibility for a mortgage.”

Home moving barriers

Three quarters of respondents said financial factors such as mortgage rates, deposits and stamp duty need to improve to make moving easier.

Lower mortgage rates would encourage 42% of homeowners to move, rising to 50% among mortgage holders. More than a third, 36%, point to lower Stamp Duty, while 31% identify lower deposit requirements.

However, cost is only part of the problem. More than a third of homeowners, at 37%, say reforms to the buying and selling process would make moving easier. One in four want transactions to become legally binding earlier to reduce fall-throughs, while 20% want a quicker, more digital process.

Older homeowners

A shortage of suitable housing is also restricting movement, particularly among older homeowners.

Almost a third, 32% of homeowners aged above 55, say more appropriate homes, including bungalows and other later-life housing, would help them move, compared with 27% of homeowners overall.

The findings suggest that a lack of confidence is being compounded by widespread misunderstandings about mortgages, with buyers mistakenly thinking you need large deposits or need to wait until you have found a property to get a decision in principle.