The HomeOwners Alliance’s 10th Annual HomeOwner Survey found that while 73% of non-homeowners still aspire to own a home, 52% are increasingly in doubt about this.

Aspiring first-time buyers are markedly more pessimistic than the wider public, with 51% believing now is a bad time to buy, compared with 35% of overall adults in the UK.

The survey also found widespread confusion about mortgages is adding to the problem, with many would-be buyers ruling themselves out before exploring their options.

The survey found 62% wrongly believe they need a deposit of at least 10%, while nearly half (49%) think borrowing is always capped at four or five times their income, and a quarter believe they cannot even look into mortgage options until they've found a property.

According to the FMB, this is the result of house prices reflecting the fact fewer homes are coming to market as delivery wanes.

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“If we want to restore people's confidence that homeownership is achievable, we need to get more small building companies building again and get more suitable homes for the right people, in the right places,” said Brian Berry, CEO at the FMB.

“Fixing the mortgage confusion highlighted in this survey matters too — but it won't count for much if there still aren't enough homes for people to buy."

Paula Higgins, CEO at the HomeOwners Alliance, added: "It is deeply concerning that more than half of aspiring homeowners believe they will never get onto the ladder.

“Some of that comes down to outdated assumptions about deposits and borrowing that are ruling people out before they've even started, and we'd urge anyone in that position to get proper, independent guidance before writing themselves off.

“But the FMB is right that better information can only go so far. If there aren't enough of the right homes being built, particularly by the small and medium-sized builders who understand and love their local areas, then confidence will keep draining away no matter how well people understand their mortgage options."