The survey by TotallyMoney also found that just one in 20 FTBs (6%) have used the scheme, with 40% of FTBs requiring financial support from family or friends for their first home.
Factors deterring buyers using shared ownership include not having full ownership of the property, paying maintenance fees and rent, and the limited choice of properties available.
The research also found that a third of 18- to 24-year-olds (33%) had never heard of the scheme.
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This comes after Aster Group revealed that only 60% of the public were aware of and understood shared ownership.
Joe Gardiner, head of communications at TotallyMoney, said: “With [getting on] the property ladder becoming increasingly difficult – and with this step being so important to many – it’s important to clear the smoke that exists around the schemes existing for first-time buyers today in order to help them make the best financial decision.
“[Although] many do not have a rounded understanding of what the government’s shared ownership scheme is, for those that do understand it, [it] can be a useful tool to [becoming] a homeowner.
“We have conducted this research and created this guide to open up understanding on shared ownership for those looking to buy, so that they too can take advantage of it.”