Over half (57%) of consumers worry they will never be able to buy their own home, an annual European Consumer Payment Report from credit management group Intrum has found.
This is despite 67% saying they prefer buying a home over renting.
Eddie Nott, managing director of Intrum, said: “Finances can be particularly tight for younger consumers.
“Though the figures show UK consumers would prefer to buy than rent their home, current house prices make it harder than ever to get a foot on the property ladder.”
UK consumers score highly in terms of financial literacy with 75% able to match financial terms to their correct definitions.
They were second only to Finland among the 24 countries surveyed.
However, consumers are heavily reliant on credit to fund their lifestyles, borrowing money more frequently than their European peers.
Of the 22% of UK consumers who have borrowed money to pay bills over the past six months, 63% have done so on more than one occasion. This is almost double the European average of 38%.