The Generation Rent report from Halifax found that the average deposit needed to purchase a first-time buyer home was £26,956 in the first quarter of the year.

Nearly three-quarters of 20-45 year olds believe that the country is in danger of being split between those in home ownership and those unable to buy with 52% predicting that the UK will become a nation of renters within a generation.

The research found that a third of potential buyers would only save for a deposit for three years before changing their plans while a fifth (21%) had already given up ever owning a home altogether.

Halifax mortgages director Craig McKinlay said: “More needs to be done to redress the balance, both through making homeownership more accessible and offering more stability through the rental sector.

“Home ownership is clearly still an important goal for a lot of people, but fewer and fewer people consider it to be something they’ll be able to achieve. Renters say they never feel properly settled and fear they will struggle to retire, so the social impact of this shift is significant.”

Ben Thompson, managing director of Legal & General Mortgage Club, said: “This situation is also exacerbated by a lack of available and affordable property supply to meet the huge demand. This is something that urgently needs to be addressed. However, the perception that it is impossible to get on the property ladder is not entirely correct.

“While it can be difficult there are deals out there and lenders are largely loosening criteria to lend at higher LTVs. It’s important that first-time buyers speak to an adviser to find these deals and get the one that best suits their personal circumstances.”