A growth in the private rented sector and older people living in houses for longer has contributed to this, the report by the Intermediary Mortgage Lenders Association (IMLA) said.

People buying their first homes later in life has also added to this trend. Annual turnover of private housing stock has dropped from 12% to 4.5% over the last three decades.

The report also found the number of cash buyers was increasing, with fewer people relying on a mortgage to purchase a home.

However, people have more diverse financial needs with the number of people using specialist lenders rising considerably.

It said this was due to the introduction of the Mortgage Market Review, which has seen more borrowers classified as ‘non-standard’ than previously.

Peter Williams, executive director for IMLA, said: “These figures paint a picture of a housing market where turnover has drastically slowed in the last thirty years.

“Quite simply, in the absence of a sustained rise in housebuilding and improved affordability and turnover, the fact that properties are coming onto the market less frequently severely limits the scope for would-be first time buyers to graduate to owning their own homes.

“Inertia in the property market spells danger for future owner-occupation levels, and the growing influence of cash and equity is sowing the seeds of a permanent social divide. Having said that, we will see some continued growth in mortgage lending – and as the market stabilises and wages rise, we may also start to see affordability improving.”