The credit report agency said 39% of mortgage seeking 20 to 40 year olds were planning to use the Help to Buy scheme this year but many of those applicants had not taken basic steps to help their application proceed.

Two-in-five applicants had not registered on the electoral roll at their current address while a quarter believed they could take advantage of the Help to Buy scheme with a deposit of less than £5,000.

Experian said a third of applicants to the government scheme were aged between 20 and 24 with 29% of would-be buyers having a total household income of less than £20,000.

Peter Turner, managing director of Experian Consumer Services, said: “Help to Buy has brought homeownership to within touching distance for thousands of younger buyers earlier than they may have dreamt possible.

“But it’s important to remember that the deposit is only part of the equation and consideration must be given to how much you can afford to borrow – and crucially repay in the years to come.”

How to improve your credit history and get a better mortgage.