A report by Yorkshire Building Society, reveals an average wealth gap of £793,000 between homeowners and renters at retirement.

By the time today’s 30-40 year-olds retire, they will be facing a wealth gap of £1.6m if they fail to get on the housing ladder, rising to £2.6m by the end of their lives.

The modelling also suggests around 70% of renter households are likely to exhaust their savings before the age of 88 if they maintain similar living standards into retirement, compared with just 6% of homeowners.

Yorkshire’s latest report, No way home? Restoring Britain’s Housing Ladder, warns the UK risks creating a “lost generation of homeowners” as affordability pressures make it increasingly difficult for people to buy their first home with lifetime consequences for wealth inequality.

The report found homeownership remains one of the UK’s strongest aspirations, with 88% of adults saying it is important.

However, confidence in achieving it declines sharply with age.

While 76% of people aged 25 to 34 aspire to own a home, this falls to 59% among 35 to 44-year-olds and just 38% among those aged 45 to 54, suggesting many who have not bought by mid-life believe they never will.

calls for a more coordinated housing strategy, including greater use of existing mortgage lending flexibility, increased housing supply, a review of stamp duty and a replacement for the Help to Buy scheme.

Yorkshire Building Society managing director of homes Tom Simpson says: “Fixing the housing ladder isn’t just about helping people take their first step — it’s about making sure they can move through it as their lives change.

“We need government, industry and lenders to come together as they never have done before, to create a system that works from start to finish: helping people become ready to buy, helping more people access ownership, and making it easier for them to move on when the time comes.”

Intermediary Mortgage Lenders Association executive director Kate Davies says: “We have long argued that buying a home remains one of the most effective ways for ordinary households to build long-term financial security.

“Yorkshire Building Society’s research reinforces that conclusion.

“It chimes closely with IMLA’s own research, which has consistently shown that the long-term financial cost of remaining outside homeownership can be enormous.”

She adds: “One of the most striking findings is that many aspiring first-time buyers assume they cannot obtain a mortgage when, in reality, they may be much closer than they think.

“Mortgage lending has evolved significantly in recent years, with lenders introducing innovative products, higher loan-to-value mortgages, more flexible affordability assessments and solutions designed specifically to help first-time buyers.

“Too many people simply rule themselves out before ever speaking to a mortgage adviser.

“Our message would be straightforward: don’t make assumptions. Speak to an adviser and understand what options are actually available.”

Davies backs Yorkshire’s call for renewed government action.

She says: “Support for first-time buyers must always go hand in hand with increasing the supply of homes if we are to avoid simply pushing prices higher.

“We also believe the government should recognise the important contribution responsible landlords make in providing homes for millions of renters.

“A healthy private rented sector and a healthy owner-occupied sector are complementary, not competing, parts of a well-functioning housing market.

“The housing ladder only works when people can move onto it and progress through it.

“Restoring confidence in homeownership would benefit not just aspiring buyers but the wider economy, creating stronger housing chains, greater labour mobility and long-term financial resilience for millions of households.”