Less than one in five cannot afford monthly mortgage payments, meaning the requirement for a deposit is holding many would-be buyers back.
Just 5% of aspiring homeowners expect to buy their first home in the next 12 months and over seven in 10 do not expect to before 2017, when Help to Buy 2 is due to finish.
The regular saver puts aside £393 a month for a deposit, which would take them one year and seven months to raise a 5% deposit or three years in London.
Without Help to Buy 2 however they could face a wait of nearly five years, or nine in London, to save a 15% deposit for an 85% LTV mortgage.
Simon Crone, Genworth vice president of Mortgage Insurance Europe, said: “We should be under no illusion that the problems confronting first time buyers will disappear overnight.
“Raising a deposit of 15% or more is an insurmountable challenge not just for younger generations, but also for many in their thirties and forties who have been locked out of the property market for most of their adult lives.
“Raising a 5% deposit is far more realistic and far healthier for society providing people can safely afford their repayments.”
Just 17% of aspiring homeowners are able to save regularly each month towards a deposit, while around one in three have given up on raising one altogether.
Many are side-lining life events until they buy a home, with one in three delaying plans to marry, start a family, or begin saving for retirement.