A new report from the Chartered Institute of Housing (CIH) predicts that there will be 100,000 first time buyers excluded from the housing market in 2011.
The UK Housing Review Briefing shows that continued low levels of house building, combined with little improvement in the supply of mortgages and the barrier of high deposits, will leave lower income families still unable to afford their own home.
The newly updated housing market statistics and commentary from leading academics Hal Pawson and Steve Wilcox forecast a subdued housing market, which is both a contributory cause and a symptom of a slow and uncertain economic recovery.
The Briefing also casts doubt on the prospects of the supply of rented homes meeting growing demand from both potential first time buyers and lower income households waiting for scarce social housing.
Latest household projections show that the number of households in England and Wales is due to grow at a rate of 245,000 per year, while we are building fewer than half of the homes we need to keep pace.
The New Homes Bonus in England is predicted to boost house building numbers by between 8% and 13% by 2016/17, and greater freedoms for councils in Scotland to build new homes is already making a difference.
However, housebuilding rates for the UK show only the very modest beginnings of any recovery from historically low levels - and are currently producing less than half the level needed to keep pace with household growth.
The UK Housing Review Briefing by Hal Pawson and Steve Wilcox is published by CIH and supported by Savills. It is available online at www.cih.org.
Over 100 house builders and housing associations are set to offer extra help for first time buyers, as the Homes and Communities Agency confirmed allocations for the new FirstBuy scheme.
A total of £180 million has been allocated to provide nearly 10,500 new homes for sale with the help of an equity loan across England over the next two years. The successful bidders are a mix of housing associations, major housebuilders and smaller local building firms.
FirstBuy was announced in March's Budget as a new equity loan scheme specifically designed to help first time buyers struggling with the need for a large deposit, while simultaneously supporting economic growth by giving house builders the confidence to progress developments.
Under the scheme, an equity loan of up to 20% of a home's value is jointly funded by the HCA and the house builder, meaning the taxpayer's contribution is matched by the private sector.
It is anticipated that the first new homes will be available for sale in September.