Latest research released by the Building Society Association shows that 40% of consumers are concerned about the rising cost of living, whilst 28% are worried about the difficulty of saving for the future.
Elsewhere, confidence in buying property remains low in September and over a quarter of respondents to the BSA Property Tracker Survey do not agree that now is a good time to buy a property compared to just 23% who do.
Raising a deposit remains the biggest barrier to property purchase (68%) and 45% say affordability of mortgage repayments is a barrier.
Home movers are particularly concerned with stamp duty costs (38%) compared to the average (14%). This is a further challenge for those who want to move up the property ladder and limits the stock of housing for those looking to make their first purchase.
Paul Broadhead, Head of Mortgage policy at the BSA said: “Confidence in the housing market is clearly fragile. Consumers were faced with political uncertainty following the vote to leave the EU and unexpected General Election results, and now the rising cost of living is their latest challenge.
“Consumer prices are running ahead of wage growth, and there is little evidence of this changing in the short term. This is adding to the formidable affordability constraints already facing prospective home buyers.
“It is evident that home-movers are facing the same affordability pressures as first-time buyers, meaning some homeowners are unable to sell their property – further reducing choice and pushing up prices for those just getting on to the housing ladder.“
Original source: https://www.bsa.org.uk/media-centre/press-releases/consumers-wary-of-buying-homes-as-market-confidenc