The report points out that as costs rise, renters are finding their disposable income disproportionately squeezed compared to their homeowner peers, resulting in a loss of confidence, both in getting on the property ladder, and in the housing market more generally.

The report says: ‘Consumers’ fall in confidence is especially prominent among renters, as the number saving for a deposit has reached a six -month low. House prices have also overtaken the cost of deposit as the top barrier to homeownership, (38% vs 35%).

Nearly two-thirds of renters (62%) have seen, or expect to see their rent increase this year, squeezing their ability to save for a deposit. As a result of cost pressures, only a small proportion (12%) believe that homeownership is within reach within the next year, slightly increasing to 16% who believe it will be possible within five years (19% in June).

Costs are also dampening enthusiasm to own a home, with three in 10 renters (28%) reporting to be uninterested in homeownership, the highest figure so far this year.

In order to make their first home as affordable as possible, almost half of those looking to buy (45%) would rather save as much as possible for their deposit, to reduce future mortgage repayments.

Conversely, just 12% would consider getting onto the property ladder with a smaller deposit and face higher borrowing costs.

Commenting on the data Barclays head of mortgages, savings and insurance Jatin Patel said: “Many people dream to one day own a home, but our latest findings highlight how renters are finding it ever harder to save for a deposit while keeping up with rising costs.”

He added: “More positively though, we’re still seeing savers create strong habits, and consider carefully the balance between getting into the market quickly with a lower deposit or trying to minimise monthly repayments in the longer term.”

ARLA Propertymark president Megan Eighteen commented: “In certain regions across the nation, rent levels have shot up to unsustainable levels, and many tenants will be finding that their finances are really being pushed to the limit.”

Alongside this, Eighteen highlighted the fact that the average deposit to purchase a home is around £70,000, so to pay heightened rent, as well as save for a deposit, was be nearly impossible for some.

“It’s really important that we tackle the root causes of these issues head-on. Additional support needs to be provided to first-time buyers in order to help them step onto the housing ladder, and the major concern in the private rented sector, which is causing rent levels to rise, is the ever-widening gap between supply and demand levels.”