Millions of young people will never own their own homes and many won’t be able to get on the property ladder until their 40s.

The warning came from the Bank of England who said house ownership is set to fall sharply.

It is devastating news for those trying to secure their own home and will put even more pressure on the mortgage and remortgage markets.

With lenders still cautious about taking small deposits and wages not rising the situati9on doesn’t look like it will improve.

David Miles, from the Bank, said he understood that most people put “great value on having a home that they can reliably call home for many years”, but said many will have to bury their dream.

Before the economy went belly-up about half of all first-time buyers put down deposits of ten per cent or less for their mortgages.

But now the deposit it twice that and unless they can borrow the money from family they are unlikely to ever own their own home.

Mr Miles said a in 2007 28-year-old,

There are fewer houses for sale now than there have been for three years, a study has found.

Asking prices are dropping by their largest amounts since the financial crisis hit the economy in 2008.

The report by Rightmove is of great concern to the mortgage and remortgage markets.

All regions in England and Wales have shown monthly falls in house prices.

The average home in November was priced at £232,144 – a fall over three per cent on the previous month.

High inflation and the crisis in the eurozone are partly responsible for the poor figures.

A drop of £7,528 from October’s prices is a blow, but that is up on the figure from 12 months previously.

The research showed that new listings were down by 11 per cent compared with a year ago.

The weekly rate of 21,375 properties coming on to the market is the lowest recorded since 2008.

Miles Shipside, director of property website Rightmove, said: “There is a nationwide consensus that the balance of power tips further still against sellers.

“There

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