High property prices are pushing millions of people out of buying a property, according to the latest figures.
Other contributing factors to the high prices include a shortage of homes for sale which has left many people with no option other than to rent.
This in turn has created intense competition in the buy to let sector.
More UK households than ever before are now living in the private rented sector (PRS) with the latest house price data suggesting that the level of people residing in the PRS is expected to continue to increase.
In June, house prices in the UK fell by 1% which is the largest monthly fall since January, new research from Halifax has revealed.
However, the average price of a home in the UK is currently £218,390, which is an increase of 2.6% year on year.
First time buyers need to save almost £33,000 for a deposit in order to be able to buy a property.
This figure rises to over £100,000 for a deposit for first time buyers in London and that is ‘not acceptable’ according to Jeremy Duncombe, Director of Legal & General Mortgage Club.
Duncombe went on to say: “Whilst demonstrating our market’s resilience during times of uncertainty, house prices are continuing to increase year-on-year and at a rate that is well above any wage increase.
“Many would-be homeowners are now turning to the private rental sector to find more affordable accommodation. Nearly a quarter of households are set to be owned by private landlords by 2021.
“The lack of affordable housing is a problem that will only worsen if the government doesn’t implement the revolution in housing policy it previously promised.
“With the dust now beginning to settle after the general election, we want to see a real push to build the thousands more homes that this country desperately needs, whether that be for prospective homeowners or renters.”