Some 4.1 million UK adults believe they will never buy, while 1.8 million of those are aged between 25 and 44.
Of those who still plan to buy their first home, 53% are looking to raise a deposit through savings accounts.
Nearly four out of ten people, or 38%, said it was because they don’t earn enough while a further one in five, or 21%, said that they would not be able keep up with their mortgage payments.
Sean Oldfield, chief executive officer at Castle Trust, said: “The biggest challenge facing those who want to buy a home in the future is finding a way to save a deposit which keeps pace with rising house prices.
“The failure of the young to break into the housing market has some very serious social implications. Older generations know this and want to help - many have the resources to do so.”
Castle Trust is offering a range of investment products for aspiring homeowners linked to the Halifax House Price Index.
Protected Housa, launched last week, gives investors full capital protection. If the Index is lower after five years, investors are guaranteed the return of 100% of their original investment.
Some 1.2 million adults between 35 and 44 don’t expect to ever buy, while four in 10 18-24 year olds expect to wait until they are at least 31 before buying.
Around 12% of potential buyers will borrow from parents, 5% intend to ask their grandparents for money and 9% are waiting to receive an inheritance.