Just 15% of people starting out in the housing market are happy with where they live, compared with two-thirds of home owners, according to the latest ING housing index.

The ranking, which is based on confidence in the housing market, fell again in the first quarter of this year, due in the main to the lack of options to buy a home, ING said.

Some 23% of people who are looking to get a foot on the home ownership ladder say their rental home is too expensive, 43% say it is too small and 39% would like a garden.

‘Potential home buyers can’t buy because either it is too expensive or there are no homes available,’ ING spokesman Wim Flikweert said.

‘They are forced to live either with their parents or in housing with high rents and other costs…. which in turn can make them financially vulnerable and stop them eventually buying a home.’

Since January, home buyers have only been able to borrow 100% of the value of their new home, down from 101%. This means they need more savings to cover basic costs.