Cost of living crisis: Buyers deferring property purchases by a year

Buyers are putting off property purchases by at least one year due to increasing living costs, research claims.

Research by savings websites VoucherCodes.co.uk found rising costs have forced more 11% of 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 said they cannot afford to buy a home. 

Of this group, one in 10 have now completely scrapped plans to purchase a property due to the cost-of-living crisis. 

Further findings from the Cost of Living Report reveal that 13% of 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 almost one in five people aged 25 - 34 said they struggle to keep up with mortgage and rent payments since the cost-of-living crisis began.

The research also investigates the major life changes British people are making to adjust to current living costs, with almost one in 10 moving or considering moving to a more affordable location.

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. 

Maureen McDonagh, managing director at VoucherCodes.co.uk, said: “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.”