Over one in 10 delay buying a home due to rising mortgage rates and cost-of-living crisis
Over one in 10 delay buying a home due to rising mortgage rates and cost-of-living crisis, according to findings from VoucherCodes.co.uk.
Key points from report:
- Just over one in 10 (11%) potential buyers have had to push back plans to buy a home by at least one year
- Almost one third (29%) of prospective home buyers in the UK say they cannot afford to buy a home
- More than two in five (42%) UK residents have seen a negative impact on their living circumstances due to the cost-of-living crisis
Following the biggest interest rate hike in 27 years, the housing market faces yet another blow as a new report suggests UK residents are putting off buying a home by at least one year due to increasing living costs.
The Cost-of-Living Report by the UK’s leading savings site, VoucherCodes.co.uk, examines how the crisis is impacting British consumers’ living arrangements. The findings show rising costs have forced over one in 10 (11%) potential buyers to push back their plans by a minimum of a year.
Among those trying to get onto the property ladder, almost one third (29%) of prospective buyers say they cannot afford to buy a home. Of this group, one in 10 (10%) have now completely scrapped plans to purchase a property due to the cost-of-living crisis.
Further findings from the report reveal that more than one in 10 (13%) consumers admit they are currently struggling to pay their rent or mortgage, which could increase further as mortgage rates continue to rise. Younger generations are being hit the hardest, as nearly one in five people aged 25 – 34 say they struggle to keep up with mortgage and rent payments since the cost-of-living crisis began (19%).
The latest stats also investigates the major life changes British people are making to adjust to current living costs. Across UK households, two in five (42%) residents have seen a negative impact on their living circumstances. As a result, nearly one in 10 (7%) people have already moved or are considering moving to another area that is more affordable, and almost one in 10 (8%) have also put themselves on the register for a council house as a result of the cost-of-living crisis.
Regional disparities are present when it comes to the property crisis with residents in London most affected by the rising cost of living as one in five (20%) admit they are putting off buying a home by at least a year, in comparison to only 6% of people living in East Anglia. Those living in London are really feeling the strain as nearly two thirds (63%) report a negative impact on their living situation – a 21% increase on the national average.
It doesn’t stop there, residents in Northern Ireland struggle the most with monthly payments as nearly a quarter (21%) admit to having difficulty paying rent and mortgages, in comparison to only 7% of people living in Yorkshire.
Maureen McDonagh, Managing Director at VoucherCodes.co.uk, commented:
“The VoucherCodes Cost-of-Living Report shows rising costs are not only having a negative impact on British consumers, but the effect is also being felt by the UK property market.
“With mortgage rates continuing to rise, our research shows many consumers are finding it increasingly difficult to get on the property ladder. The situation is also being further exacerbated by low supply and high demand for both rental and mortgaged properties, pushing up property prices even further.
“Many consumers are already having to adopt more extreme measures to afford a property. As interest rates continue to play havoc with mortgage lending, one in 20 (5%) are living for free with friends, family or partners to save up more of a deposit before looking to buy.
“As the cost-of-living crisis continues to take its toll, it’s clear that rising mortgage rates and spiralling rent payments, are concerning potential homeowners. It remains to be seen if these concerns will begin to slow rising house prices – which have risen by 12.8% in the past year.”
To find out more about how consumer are being impacted by the cost-of-living crisis read the full report here.
Kindly shared by VoucherCodes.co.uk
Main article photo courtesy of Pixabay
