In its Broken Ladder report, the HBF revealed that the figure was even higher in London and the South-East, with young people in the capital needing to save 60% of their income to get on to the housing ladder.
A lack of affordable homes and limited access to mortgage financing are the two main obstacles shutting young people out of the market, the report said.
“These figures reveal the extent of our housing crisis. First-time buyers – the life-blood of the housing market – are almost entirely shut out,” said Stewart Baseley, executive chairman of the Federation.
He added: “The lack of mortgage availability is further strangling a market already choking on a lack of supply.”
The high cost of private rents and utility bills is further crimping young people’s ability to save for a house.
According to the report, those aged 22-29 saving for a deposit would have only 13% of their monthly wage left to cover bills and living costs.
Housebuilders have offered incentives, such as shared equity schemes, since the recession to help first-time buyers, but the scrapping of the HomeBuy Direct Scheme at the end of September has made it more difficult to get on to the ladder.
As a result, more people are being forced to stay with their parents, with nearly a third of men and a fifth of women aged 20-34 living at home, the report revealed.
