Spiralling house prices and the increasing cost of living are crushing the dreams of homeownership for many, with a shocking six in 10 renters believing they’ll never escape the rental trap, according to a disheartening new study.

The research, conducted by Go Compare Home Insurance, lays bare the stark reality facing a generation priced out of the property market. It found that over half (52%) of non-homeowners feel that the current economic climate has made homeownership an impossible dream, leading them to question the importance of owning a property altogether.

Despite this, the desire to own a home remains strong. Over three-quarters (76%) of those surveyed still believe that homeownership is important, highlighting the emotional and financial security associated with owning a property.

However, the financial hurdles to homeownership are becoming increasingly insurmountable. Go Compare’s salary checker tool reveals that a single person needs to earn a staggering £59,307 per year to afford a home in the UK. Shockingly, an analysis of average salaries across all industries by the Office for National Statistics (ONS) found that no sector currently offers an average wage high enough to meet this requirement.

The study also sheds light on the reasons behind renters’ growing pessimism. Almost a third (30%) feel overwhelmed by the long-term commitment of owning a home, while 28% find renting a more convenient and flexible option. Concerns about house price fluctuations and the potential for financial loss also weigh heavily on potential buyers, with 14% worried about losing money in the long run.

Commenting on the findings, a spokesperson for Go Compare highlighted the urgent need for action to address the housing affordability crisis:

“It’s disheartening to see that the majority of renters feel priced out of homeownership due to the current economic realities. While owning a home remains a goal for many, the current market makes it feel unattainable. More needs to be done to support first-time buyers and make the dream of homeownership a reality.”

The study calls for government intervention to tackle the issue, suggesting measures such as subsidised house prices, stamp duty relief, and improvements to existing schemes like Help-to-Buy ISAs, shared ownership, and 99% mortgages.