According to Yorkshire Building Society’s (YBS) report Housing Britain, which surveyed around 1,750 adults, economic volatility in the UK was the most frequently cited reason for putting off a purchase at 22 per cent.
When asked about how they intended to fund their next home purchase, 87 per cent of respondents said they would be looking for financial support outside of a mortgage, and 24 per cent said they would be interested in using a government-backed scheme.
Of those, 62 per cent said using a government-backed scheme made them feel more secure about their home purchase, while a third said using such a scheme made them feel the financial burden was shared.
Of those who had never used, or did not intend to use a scheme, 21 per cent said this was because they did not know enough about the support available to them. This rose to over a third for first time buyers.
Over a third, 35 per cent, of those who were asked about why they had not used a government scheme said it was because they were not eligible.
Demand outstripping property supply
Annual house price growth in June was 12.4 per cent year-on-year, compared to 9.7 per cent in May as demand continues to outstrip supply. YBS said growth in house prices has been maintained despite increasing inflation, rising interest rates, and record-high house prices preventing many would-be buyers from making their purchase.
Ben Merritt (pictured), director of mortgages at Yorkshire Building Society, said: “Although a relatively recent development, the cost of living crisis has shot right to the top of the list of concerns when it comes to purchasing a home.
“The crisis is now being felt across the population and filtering through to all aspects of life. Furthermore, with inflation now over nine per cent, it is showing no signs of abating. With little visibility into what the future might hold, or indeed how long the crisis will last, our research shows many buyers are hesitant of the market, feeling uneasy about the prospect of making a purchase in the current economic climate.”
He added: “The extent to which there is a supply issue in the housing market is demonstrated by the fact that, despite this, house prices have continued to rise, with demand remaining far greater than supply regardless.”
