Five charts that show why Britain's home ownership dream is dead
Research by the HomeOwners Alliance lobby group found concerns over soaring stamp duty bills, leasehold fears and difficulties with downsizing are the worst they have been since 2015.
It means just two thirds (64pc) of would-be first-time buyers think owning a property is in reach, compared to 71pc last year.
From the whittling away of government support to the postcode lottery of housing availability, Telegraph Money lays bare the death of Britain's homeownership dream in five charts.
The drop in housing aspiration coincides with Labour's decision not to extend the first-time buyer stamp duty relief introduced by Liz Truss during her short premiership.
Other government-backed schemes have either been scrapped or had their benefits stripped back.
For example, the Help to Buy Isa previously allowed savers to put in £200 each month which the Government would then top up by 25pc (capped at £3,000) when they bought their first home. The scheme was closed to new applicants in November 2019.
Meanwhile, the lifetime Isa (Lisa) allows savers to put in £4,000 each year which the Government will add a 25pc bonus to, up to a maximum of £1,000 per year.
However, it can only be used towards properties that cost £450,000 or less. This threshold has remained frozen since it was introduced in 2017 despite years of house price growth.
Rosie Hooper, financial planner at Quilter Cheviot, said: 'Younger people's hopes of getting on the housing ladder have been quietly chipped away as government support has faded.
'What we're left with is a generation facing record house prices, high interest rates and far less support than those who came before them.'
Over-60s control more than half of all housing wealth in Britain, accounting for some £2.89 trillion in bricks and mortar.
However, those wishing to downsize – and free up property for younger families – find there are scant homes into which they can move.
The National House-Building Council warned in 2023 that bungalows were 'on the critically endangered list' as developers prioritised squeezing more properties on to plots of land.
Lucian Cook, of estate agent Savills, said the blockades on downsizing were preventing younger generations 'trading up the housing ladder.'
He added: 'Despite many older homeowners holding on to properties that are too big for their needs, there is little incentive for them to move during their lifetime.'
Savills research shows boomers made up 44p of homeowners but just 18.5pc of buyers last years. It means just one in 57 moved homes.
The proportion of people concerned about the leasehold system rose by 22 percentage points to 64pc – the largest increase noted in the survey.
Despite Government pledges to reform the system, leaseholders remain trapped in homes they cannot sell due to rapidly rising ground rents and uncapped service charges.
Katie Kendrick, of the National Leasehold Campaign Group, said: 'Leasehold has become one of the main reasons for broken chains in the buying and selling process, with leasehold sales taking much longer to complete. Every day in the National Leasehold Campaign, we have reports of sales falling through. It's heartbreaking.'
Timothy Douglas, of estate agent trade body Propertymark, said buyers were more aware of issues with leasehold properties thanks to 'education, legislation and news surrounding the subject'.
It is up there with Britain's most hated taxes. So it's little surprise stamp duty topped the list of concerns noted by the HomeOwners Alliance survey.
Almost two thirds of respondents said they were worried about stamp duty costs, compared to half in 2018.
Analysis by estate agency platform Alto found that 41pc of estate agents has seen a drop in first-time buyer registrations, while 18pc recorded a fall in viewings.
One agent told the company: 'The stamp duty shake-up was the final straw. It tipped already stretched buyers over the edge.'
The tax threshold was lifted by the Conservatives in 2022, but reverted to its previous lower level in April. The average first-time buyer now needs to scrape together thousands of pounds in addition to a house deposit.
Alice Haine, of investment platform Bestinvest, said: 'For some aspiring homeowners, that jump in costs may prove to be a step too far. When you consider that rental rates have also increased sharply, it has become harder and harder for aspiring homeowners to set aside the amount they need to secure a home.'
The HomeOwners Alliance survey found that housing worries were more acute in Wales than in any other region. Nine in 10 respondents were concerned about first-time buyers' ability to get on the housing ladder in Wales, compared to 76pc in the north of England.
Welsh respondents were also far more worried about stamp duty rates and negative equity than anywhere else in Britain.
Katherine Binns, of the HomeOwners Alliance, said: 'In Wales, higher concern around negative equity points to fragility in the market and a growing sense that homeownership is becoming less secure or attainable.'
By contrast, the leasehold and freehold system was mentioned as a serious issue by 70pc of respondents in the South, compared to 60pc in Scotland.
However, Scottish respondents were more likely to report low housing availability than those in any other region.
Ms Binns added: 'Major cities like Edinburgh and Glasgow have declared housing emergencies due to severe shortages of affordable housing, escalating private rents and increasing homelessness.
'Given the South and South East's higher proportion of flats, it's no surprise that many buyers find themselves in a Catch-22: a flat may be the affordable option, but they're reluctant to purchase a leasehold with all its complexities and costs. Residents are more exposed to challenges like escalating ground rents and complex service charges, making leasehold reform a pressing regional issue.'
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