More than half of aspiring homeowners do not believe they will ever be able to buy a home, despite homeownership remaining a long-term goal for almost three-quarters of non-homeowners, according to the HomeOwners Alliance’s latest annual survey.

The organisation’s 10th annual HomeOwner Survey found that 73% of non-homeowners would like to own their own home. However, 52% of those hoping to buy doubt they will ever achieve that ambition.

The research also suggests aspiring first-time buyers are becoming increasingly pessimistic about market conditions. More than half, 51%, believe now is a bad time to buy, compared with 35% of UK adults overall.

The survey indicates that misconceptions about mortgages may also be discouraging prospective buyers before they seek professional advice. Among aspiring homeowners, 62% believe they need a deposit of at least 10%, while almost half, 49%, think they can only borrow up to four or five times their income.

Nearly half, 47%, assume the lowest interest rate always represents the cheapest mortgage overall, 40% believe their existing bank will offer the best deal, and one in four think they cannot explore mortgage options until they have found a property.

The findings also highlight the financial pressures preventing existing homeowners from moving. Almost three-quarters, 74%, say lower costs such as mortgage rates, deposits or stamp duty would make moving easier.

Lower mortgage rates would encourage 42% of homeowners to move, rising to 50% among those with a mortgage. Lower stamp duty was cited by 36%, while 31% said reduced deposit requirements would help.

However, respondents also pointed to structural issues within the housing market. More than a third, 37%, said improvements to the home buying and selling process would encourage them to move. One in four would like transactions to become legally binding earlier to reduce fall-throughs, while one in five favoured a faster, more digital conveyancing process.

Housing supply also remains a concern, particularly for older homeowners. Nearly a third, 32%, of homeowners aged over 55 said a greater supply of suitable later-life housing, including bungalows, would help them move, compared with 27% of homeowners overall.

Paula Higgins, chief executive of the HomeOwners Alliance, said: “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.

“At the HomeOwners Alliance, we provide free, independent guidance to help people understand their options and make informed decisions about buying and owning a home.

“But information alone will not solve the problem. The government and industry must also tackle the high cost of moving, improve the buying and selling process and ensure the right homes are being built for people at every stage of life.”

RETIREMENT HOUSING DEMAND OUTSTRIPS SUPPLY

The survey also examined attitudes towards specialist retirement housing in research conducted with the Association of Retirement Community Operators (ARCO).

It found that 41% of homeowners aged 75 and over would consider moving into specialist retirement housing themselves, while 53% of homeowners said they would consider it for a family member.

However, more than half, 53%, of those interested in specialist housing said there were not enough suitable developments in their local area.

Respondents highlighted professionally managed communities, predictable monthly costs, healthcare access, emergency support and social opportunities as key attractions.

FINANCIAL PROTECTION MISUNDERSTOOD

Separate research carried out with LifeSearch found widespread misunderstandings about income protection insurance and household financial resilience.

Almost half, 47%, of homeowners incorrectly believe income protection covers redundancy, rising to 61% among those who already have a policy. More than a quarter, 26%, mistakenly believe mental health conditions such as anxiety and depression are excluded, while 19% think government support would provide sufficient financial help if they were unable to work.

The survey also found that 63% of homeowners have not reviewed their household budget during the past year and 78% have not calculated how long their emergency savings would cover household expenses. Four in ten homeowners who have, or have considered, income protection have never reviewed their cover.

LACK OF TRUST HOLDING BACK HOME IMPROVEMENTS

Research conducted with the Federation of Master Builders found that consumer confidence is also affecting the home improvement market.

One in five homeowners, 19%, said they had postponed building work because they could not find a builder they trusted. The HomeOwners Alliance estimates this equates to £11.2 billion of lost economic activity each year.

More than two-thirds, 68%, said mandatory licensing for builders would improve confidence, while 82% said they would be prepared to pay more to employ a licensed builder.

The survey found that many delayed projects relate to essential maintenance rather than discretionary improvements. More than a quarter, 27%, want to upgrade electrical, plumbing or heating systems, while 24% need to address structural problems or disrepair.

Higgins said: “Across the housing market, consumers want to act but often lack confidence, clear information and protection. Unlocking the market means making it easier and safer to buy, move, plan for later life and improve a home.

“Working with trusted partners helps us uncover these concerns, bring them into the public debate and push for practical change that puts homeowners and aspiring homeowners first.”