The report forecasts an increase from £32bn to £54bn between 2023 to 2029, a 70% increase, with demand set to continue to increase over the timeframe.

According to the report, the three strongest drivers for growth are shared ownership, which is expected to grow by 126% from £2.3bn to £5.2bn, lending to retirees, which is yet again set to increase by 126% from £600m to £1.4bn, and demand mortgages on self-build properties, forecast to increase 103% from £57m to £116m.

Together said inflationary costs, as well as the fall out from the cost-of-living crisis are expected to continue to negatively impact borrowers’ ability to access credit, leading to an increased need for specialist lending.

The research also found that over one sixth of regulated mortgage lending in 2023 fell into one or more specialist categories, set to grow to over 20% by 2029.

According to Together, in the last five years, 7% of non-standard applicants were rejected, with 4% also denied financing in the last 12 months.

Ryan Etchells, CCO at Together commented: “Our research highlights the true challenges faced by home buyers in the residential property market today.

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“We can clearly see that in response to the wider economy and people’s changing lives and financial needs, the proportion of ‘non-standard’ mortgage applicants will only continue to rise.

“At a time when mainstream lenders are not adapting their lending criteria fast enough - the case for specialist lenders has never been clearer.

Rob Thomas, Economist and Principal Researcher at the Intermediary Mortgage Lenders Association (IMLA) added: “As working patterns and lifestyles have become more diverse, there is now a growing legion of people who need the support of the specialist market.

“Estimates suggest that since the global financial crisis 3.1 million households who would have been expected to enter homeownership based on previous trends have failed to do so.

“Many of these households will believe that their specific characteristics block them from any chance of owning their own home when specialist lending may be able to provide the solution they need.

“Given the substantial social and financial benefits that homeownership has demonstrated over many decades it’s obvious that there is a need to improve awareness of the specialist options that might assist them in achieving their ambitions of homeownership.”