Home ownership now "seems like an impossible dream" for many, says Mintel, whose research has found that 42% of UK renters believe they will never be able to afford their own home.
The research also found that if saving for a deposit takes too long it can have a negative impact on home ownership intentions. Indeed, currently just 17% of renters are saving for a deposit on their first home, rising to 33% of under-35s.

But whilst 34% of renters aged 25 to 34 do not think they will ever be able to afford their own home, this jumps to 46% of those aged 35 to 44, implying that the longer it takes to reach the savings goal, the more unattainable it appears.

Overall, 20% of UK consumers are considering taking out a mortgage in the next year, and the demand for mortgages is declining. Just under a quarter (23%) of consumers were looking to take out a mortgage in 2012 and 21% in 2013.

"The fact that one in five Brits is considering taking out a new mortgage shows there is still a strong level of demand for new mortgages," says Mintel financial services analyst Jessica Morley.

"However, the gradual fall in applications is likely to reflect a combination of effects, including a stabilising of the market after its dramatic resurgence following the economic recovery and hesitance stemming from high house prices."